Unexpected inflation can often
A. reduce price levels below cost.
B. help lenders collect payments in more valuable dollars.
C. reduce wages below the inflation rate.
D. help borrowers by allowing them to pay back lenders with less valuable dollars.
Answer: D
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Refer to above figure. Given a tariff of $3 per unit, what is the country's consumer surplus?
What will be an ideal response?
When an investment bank guarantees an issuer of new securities a certain price it is acting as a(n)
A) auctioneer. B) underwriter. C) broker. D) dealer.
Over the long run and across countries, there is evidence of ________ between the growth rate of the money supply and the inflation rate
A) no relationship B) a weak link C) a strong link D) a negative relationship
When numerous Japanese companies buy $100,000,000 worth of goods or services from U.S. producers, ceteris paribus, there will be
A) appreciation in the value of the yen against the dollar. B) depreciation in the value of the yen against the dollar. C) depreciation of the dollar against the yen. D) no change in values of the currencies.