Which of the following explains why redistribution occurs during inflation?
A. Relative prices remain unchanged.
B. Rising prices fail to signal desirable changes in the mix of output.
C. All loans are indexed to inflation.
D. Because all prices do not change at the same rate, people buy different combinations of goods and services and own different combinations of wealth.
Answer: D
You might also like to view...
According to this Application, more years of work would be required to pay off a student loan if all prices
A) increased by 20 percent. B) remained stable. C) increased by 40 percent. D) decreased by 10 percent.
Quotas are government imposed limits on the ________ of goods traded between countries
A) prices B) quantity C) value D) Either B or C
During the entire period of 1820–1920, there were persistent trends in the structure of American foreign trade. They exhibited
(a) a decrease in imported finished manufactures and an increase in exported finished manufactures. (b) an increase in the exports of crude materials and foodstuffs and a decline in their importation. (c) increases in both imports and exports of manufactured goods and foodstuffs. (d) no exports or imports.
In 2005, the cash assistance program with the highest total annual payments was TANF
Indicate whether the statement is true or false