If the rate of inflation in a given time period turns out to be higher than lenders and borrowers anticipated, then the effect will be:
a. a redistribution of wealth from borrowers to lenders.
b. a net gain in purchasing power for lenders relative to borrowers.
c. no change in the distribution of wealth between lenders and borrowers.
d. none of these.
d
You might also like to view...
Which of the following is an example of division of labor?
a. an author writing a book one chapter at a time b. a firm trying to get rid of a labor union c. separating resources into four categories: land, labor, capital, and entrepreneurial ability d. allocating revenue among a firm's resource suppliers e. dividing an assembly process into separate steps
If supply increases, then the
A. supply curve shifts to the left. B. equilibrium quantity goes down. C. demand curve shifts to the right. D. equilibrium price goes down.
The main determinants of investment are the interest rates and expected profit.
a. true b. false
What happens in a monopolistically competitive market with the entry of new firms?
What will be an ideal response?