Assume that for a given year, the nominal interest rate is 9 percent while inflation rises to 11 percent indicating a 4 percent higher rate than anticipated. Which group of people is made better off by the inflation?
a. Those who lend at fixed interest rates
b. Those who borrow at fixed interest rates
c. Those who borrow at variable interest rates
d. Those who receive fixed incomes
e. Those who save at variable interest rates
b
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In the short run, with prices fixed, how would an increase in government spending affect the DD-AA equilibrium?
A) It will increase output and appreciate the currency. B) It will increase output and depreciate the currency. C) It will decrease output and appreciate the currency. D) It will decrease output and depreciate the currency. E) It will increase output and have no effect on the currency.
The U.S. claimed a disproportionate share of world trade given its share of the world's population
Indicate whether the statement is true or false
The Phillips curve reflects the relationship between
A. the price level and inflation. B. inflation and real GDP. C. unemployment and inflation. D. unemployment and real GDP.
Economic growth is represented on a production possibilities frontier model by the production possibilities frontier
A) shifting outward. B) shifting inward. C) becoming steeper. D) becoming flatter.