Which of the following statements is always true when inflation occurs?
a. The international competitive position of the country is negatively affected.
b. The domestic money loses purchasing power.
c. None of the above is true.
d. All of the above are always true.
e. Lenders benefit and borrowers suffer.
.B
You might also like to view...
The margin requirement set by the Federal Reserve is the
A) proportion of the purchase price of a security that an investor must pay in cash. B) difference between the interest rate banks may charge on loans and the interest rate they receive from deposits. C) same thing as the required reserve ratio on deposits. D) difference banks must maintain between the value of their assets and the value of their liabilities.
Stimulus spending in 2009 was used for
a. building roads and bridges. b. providing aid to local and state governments. c. making payments to the unemployed. d. All of the above are correct.
Which of the following is an accurate example of a perfectly competitive market?
a. If the price of corn is $6 a bushel, a corn farmer will receive $8 a bushel for his corn. b. If the price of soybeans is $7 a bushel, a soybean farmer will receive $7 a bushel for her soybeans. c. If the price of alfalfa is $5 a bushel, an alfalfa farmer will receive $4 a bushel for her alfalfa. d. If the price of barley is $4 a bushel, a barley farmer will receive $8 a bushel for his barley.
At E2, what is the value of the U.S. dollar?
a. less than 1.00 euro
b. 1.00 euro
c. greater than 1.00 euro but less than 1.50 euro
d. 1.50 euro