If inflation turns out to be higher than was anticipated, debtors are helped because
A) the real present value of their payments increases.
B) the real present value of their payments decreases.
C) the nominal present value of their payments increases.
D) the nominal present value of their payments decreases.
B
You might also like to view...
The value of all the equipment and structures of an economy is referred to as:
A) wealth. B) national income. C) asset value. D) capital stock.
One thing that did not happen in the former Soviet Union was
a. widespread corruption b. a lack of faith in formal institutions c. workers bribing officials to get good jobs d. consumers paying fair market prices to get desired products e. prices not being allowed to allocate resources efficiently
In the early 2000s, laws requiring banks and mortgage brokers to disclose the terms of home loans:
A. were an example of how the government can act to solve the moral hazard problem. B. reduced statistical discrimination in the home mortgage market. C. prevented Americans from entering into mortgage contracts that they did not understand. D. were so numerous and detailed that borrowers didn't read or understand the information the companies had disclosed.
If velocity remains constant, there are three possible scenarios for the quantity theory of money and prices. Give an example for each of these scenarios.
What will be an ideal response?