Which of the following is true about inflation?
A. Inflation promotes social harmony by uniting people against the government.
B. Inflation is more damaging if it is anticipated.
C. Accurate anticipation of inflation is possible for everyone who is well informed about economic events.
D. Those who lend money at a rate below the rate of inflation suffer economic losses.
Answer: D
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What happens when the central bank decides it will sell bonds using open market operations?
a. Interest rates decrease. b. The money supply increases. c. The money supply decreases. d. The money supply is unaffected.
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a. True b. False Indicate whether the statement is true or false
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