Opponents of indexing fear that it will lead to a(n)
A. acceleration of inflation.
B. abrupt reduction of the money supply.
C. shortfall of tax revenues, and increased budget deficits.
D. unfair wealth transfer to debtors.
Answer: A
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The Celler-Kefauver Act of 1950 amended the:
a. Sherman Act b. Clayton Act. c. Federal Trade Commission Act. d. Wagner Act.
If M increases and V decreases: a. nominal GDP increases
b. nominal GDP decreases. c. nominal GDP stays the same. d. there is an indeterminate effect on nominal GDP.
Which of the following statements best expresses a firm's profit-maximizing decision rule?
a. If marginal revenue is greater than marginal cost, the firm should increase its output. b. If marginal revenue is less than marginal cost, the firm should decrease its output. c. If marginal revenue equals marginal cost, the firm should continue producing its current level of output. d. All of the above are correct.
If the law of diminishing marginal product holds true and workers emigrate from Haiti, the wage rate of workers who remain in Haiti would be expected to:
A. fall because fewer workers are working with the same amount of capital. B. rise because fewer workers are working with the same amount of capital. C. rise because more workers are working with the same amount of capital. D. fall because more workers are working with the same amount of capital.