Real income is redistributed from ________ in the case of ________ inflation
A) creditors to debtors, anticipated
B) creditors to debtors, unanticipated
C) debtors to creditors, anticipated
D) debtors to creditors, unanticipated
B
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The U.S. used high-pressure steam engines, whereas the British favored low-pressure engines. The reason for the American preference for high-pressure steam engines was that
(a) low-pressure steam engines, though more efficient, were complicated to build and operate and America lacked skilled labor compared to England. (b) the high-pressure steam engines used extravagant amounts of wood fuel. The U.S. abundance of wood compared to Europe made building high-pressure steam engines cheaper in the U.S. (c) Americans simply lagged behind technologically compared to England and continued to use the outdated high-pressure steam engines. (d) England had patents on the superior low-pressure steam engine and would not allow other nations to use the technology.
Price elasticity remains constant along a straight-line demand curve
a. True b. False Indicate whether the statement is true or false
A recession causes
a. transfer payments and corporate profits to increase b. military spending and corporate profits to increase c. unemployment to increase and transfer payments to decrease d. transfer payments to increase and corporate profits to decrease e. household income and government transfer payments to decrease
If monetary policymakers fear a recession resulting from increased pessimism on the part of business people, and they want to avoid the recession, they would:
A. likely lower their target rate for inflation. B. shift the monetary policy reaction curve to the right. C. shift the monetary policy reaction curve to the left. D. encourage fiscal policymakers to act.