Which of the following is not a way in which high inflation reduces productivity?
a. High rates of inflation increase menu costs.
b. Rapid inflation destroys work incentives and encourages speculation.
c. Variable rates of inflation create insecurity.
d. High inflation rates also have the power to deteriorate international competitiveness.
e. High rates of expected inflation increase the real interest rate and thus reduce investment.
.E
You might also like to view...
Under a market system, the people with information about buyers' desires, production technology and resources make the decisions
Indicate whether the statement is true or false
Public goods are characterized by the free-rider problem because
A) no one can be excluded from the benefits of public goods once they are produced. B) public goods are usually things that people really do not want to consume. C) public goods are characterized by the principle of rival consumption. D) public goods can easily be subdivided into small units.
Investing all your money in one company is an example of:
A. risk diversification. B. risk pooling. C. risk aversion. D. None of these statements is true.
In 2009, which category accounted for the highest share in the U.S. imports?
a. Industrial supplies b. Capital goods c. Services d. Consumer goods