During a period of deflation,

A. People on fixed incomes are better off.
B. People who hold cash are worse off.
C. The price level rises.
D. Lenders are worse off.


Answer: A

Economics

You might also like to view...

The Fed's Regulation Q

A) placed a ceiling on the interest rates U.S. banks could pay on time deposits to foreigners. B) placed a ceiling on the interest rates U.S. banks could pay on time deposits. C) placed a ceiling on the amount U.S. residents can deposits in Euro banks. D) placed a ceiling on the amount foreign residents can deposits in domestic American banks. E) placed a ceiling on the amount foreign banks can pay on time deposits.

Economics

Examination of data since 1953 indicates that during this period stretching more than half a century, the Phillips curve

A) fails to exist. B) is smoothly upward sloping. C) is smoothly downward sloping. D) slopes smoothly upward at first but then slopes smoothly downward.

Economics

When quantity demanded is more than quantity supplied:

a. rationing b. price floor c. excess demand d. surplus e. equilibrium

Economics

A financial strategy that reduces the chance of suffering losses arising from foreign exchange risk is referred to as

A) hedging. B) foreign exchange leverage. C) conversion depletion. D) transaction mitigation.

Economics