If short-term government bond rates were indexed

A) such bonds would be a poor hedge against inflation.
B) banks and saving and loan institutions would likely lose deposits.
C) the government would gain from the implied inflation tax.
D) the government would gain from the implied inflation subsidy.


B

Economics

You might also like to view...

With regard to the American Revolution, research suggests that

(a) it was not waged against the law but against a particular alien authority. (b) all contracts, respecting property, remained basically unchanged. (c) the basic ideas established in the colonial era remained untouched by the Revolution, apart from the abolition of primogeniture and perpetual entailment. (d) all of the above are true.

Economics

Refer to the table below. If Stuffed Pies is currently producing 7 units of quality, to maximize profit, Stuffed Pies should ________ the units of quality.


Stuffed Pies is a frozen calzone manufacturer. The table above summarizes Stuffed Pies' marginal revenue and marginal cost of quality at various quality amounts.

A) not change
B) decrease by 50 percent
C) increase
D) decrease

Economics

Which of the following is most likely to cause the dollar to depreciate?

a. higher domestic interest rates b. an increase in the rate of inflation abroad c. a shift by the Fed to a more expansionary monetary policy d. a decrease in foreign interest rates

Economics

What is the amount of tariff imposed on a ton of sugar?

A. $1 B. $1,000 C. $500 D. $50

Economics