An effect of the inflation tax is that it redistributes income from the:
A. government to the borrowers of fixed-interest-rate debt.
B. borrowers of fixed-interest-rate debt to the government.
C. lenders of fixed-interest-rate debt to the borrowers of this debt.
D. borrowers of fixed-interest-rate debt to the lenders of this debt.
Answer: C
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Car insurance and cars are complements. If the price of car insurance increases, the
A) demand for cars decreases. B) demand for cars increases. C) quantity of cars demanded decreases. D) quantity of cars demanded increases. E) More information is needed to determine if the demand increases or decreases.
If you use $1,000 to purchase silver bullion, which you plan to keep in a safe, you are using money as:
A. a medium of exchange. B. a store of value. C. bank reserves. D. a unit of account.
According to this Application, the Fed responded to the financial crisis by continuing to develop new programs. One example of this was its announcement that it would now purchase commercial paper, which is the short-term debt of corporations
This is an example of the Fed acting as a A) unit of account. B) store of value. C) medium of exchange. D) lender of last resort.
A limitation one faces when shopping for clothes is the amount of time available to shop
a. True b. False Indicate whether the statement is true or false