Which of the following statements is true?
A. Inflation that is higher than expected benefits creditors, and inflation that is lower than expected benefits debtors.
B. When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy decreases.
C. Whether you gain or lose during a period of inflation depends on whether your income rises faster or slower than the prices of the things you buy.
D. There are no costs or losses associated with anticipated inflation.
Answer: C
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If you hear that unemployment increased by 2 percentage points to 4 %in the past year, while the labor force participation rate and the population remained constant, it means:
A. unemployment doubled in the past year. B. there was a 100 percent increase in unemployment. C. twice as many people are without work than was the case a year ago. D. All of these are true.
The Federal Reserve's primary function is to control the money supply
a. True b. False Indicate whether the statement is true or false
In a strike, what does the union have to lose? What does management lose?
If the usury law was in effect, how much money would be lent out?
