Generally speaking, which of the following groups would tend to gain real income from the wealth effects of inflation?
A. People who have savings accounts at fixed rates of interest.
B. People with fixed income.
C. People who own assets that are appreciating faster than the inflation rate.
D. People who hold all of their assets in the form of cash.
Answer: C
You might also like to view...
In order for barter trades to occur, there must be a
a. singularity of interests. b. bargaining intermediary. c. double coincidence of wants. d. sufficient supply of cash.
Which statement is the most accurate?
A. Labor unions today have very little economic power. B. Large employers today have very little economic power. C. Every few years a strike virtually shuts down our economy. D. Since WWII, the economy has never lost as much as one half of 1% of its work time because of strikes.
Monopolies, oligopolies, and monopolistic competitive industries all
A. raise price and quantity over what would occur in perfect competition in order to maximize their profits. B. earn positive profits in the long run. C. are completely unconstrained in their pricing. D. have market power.
If the aggregate supply curve is horizontal,
A. there are unemployed resources. B. the economy is inside the production possibilities frontier. C. it is possible to increase output, without driving up prices, by putting unemployed resources to work. D. All of the choices are correct.