Generally speaking, which of the following groups would tend to gain real income from the wealth effects of inflation?
A. People who purchase long-term bonds when interest rates are low
B. People who have passbook savings accounts
C. People who own assets that are appreciating faster than the inflation rate
D. People who hold all of their assets in the form of cash
C. People who own assets that are appreciating faster than the inflation rate
You might also like to view...
According to the law of increasing costs, as the United States expends more of its resources on reducing air pollution,
A. the quantity of other goods that must be given up for further reductions in air pollution will decrease. B. the quantity of other goods that must be given up for further reductions in air pollution will increase. C. the social cost of additional air pollution will increase. D. there will be no change in the marginal cost of reducing air pollution.
If a firm shuts down it
A) will produce nothing but must pay its fixed and variable costs. B) will suffer a loss equal to its fixed costs. C) will earn enough revenue to cover its variable costs but not all of its fixed costs. D) will produce nothing but must pay its variable costs.
The difference between consumption spending and disposable income _____
Fill in the blank(s) with the appropriate word(s).
Net exports is a negative number whenever
A. a nation's exports of goods and services exceed its imports. B. a nation's imports of goods and services exceed its exports. C. the nation's gross investment is on the decline. D. the nation's gross savings rate is on the decline.