An unexpected reduction in inflation would tend to benefit which of the? following?
A) creditors
B) debtors
C) creditors and debtors
D) neither creditors nor debtors
Answer: A) creditors
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Investment banks specialize in
(a) Managing borrowing and the deposits of its customers (b) Managing commercial papers (c) Facilitating the loan interactions between banks and merchants (d) Handling long-term securities such as stocks, bonds and other securities.
In response to a price change for good Y, if the cross-elasticity of demand for good Y is positive, good X and good Y are complements
a. True b. False Indicate whether the statement is true or false
What do you think is meant by the statement that "successful monetary policy requires competent people and the right institutional environment"?
What will be an ideal response?
A temporary decrease in government purchases causes the real interest rate to ________ and the price level to ________ in general equilibrium.
A. rise; rise B. rise; fall C. fall; rise D. fall; fall