A legitimate objection to the government issuance of "indexed" bonds is that they
A) are more of a drain on the Treasury than conventional bonds.
B) can encourage inflation and weaken policy resistance to it.
C) discourage saving when inflation is reduced.
D) further discourage the use of money and thus increase shoe-leather costs.
B
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If the Phillips curve represents a "________ relationship," then the trade-off between unemployment and inflation is permanent
A) cyclical B) structural C) frictional D) dynamic
In general, banks make profits by selling ________ liabilities and buying ________ assets
A) long-term; shorter-term B) short-term; longer-term C) illiquid; liquid D) risky; risk-free
A decrease in population would shift the demand curve to the left.
Answer the following statement true (T) or false (F)
Suppose the market for autoworkers is initially in equilibrium, but then the demand for automobiles increases and simultaneously the automakers allow autoworkers less flexibility working at the plants. What happens in the market for autoworkers?
A. The equilibrium wage rate and the equilibrium quantity of labor will both decrease. B. The equilibrium wage rate will increase and the equilibrium quantity of labor will increase, decrease or stay the same. C. The equilibrium wage rate will increase, decrease or stay the same and the equilibrium quantity of labor will increase. D. The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.