If inflation is correctly anticipated, those who buy government bonds will:
A. suffer losses because they will be compensated by lower interest payments.
B. suffer losses regardless of inflation because interest paid on government bonds is set by Congress.
C. not suffer losses because they will be compensated by higher interest payments.
D. not suffer losses because inflation does not affect the purchasing power.
Answer: C
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Total revenue increases if the price of the good
A) rises and demand is elastic. B) rises and demand is inelastic. C) rises and demand is unit elastic. D) falls and supply is inelastic. E) falls and demand is unit elastic.
According to many economists who emphasize the connection between productive contribution and economic reward, income inequality
a. can actually make the poor better off in the long run b. has nothing to do with property rights c. promotes efficiency in the use of resources d. is consistent with long-run economic growth e. has a negative effect on savings and investment incentives
(Last Word) After years of aiding drug cartels, mobsters, and terrorist groups laundering money, HSBC bank was:
A. fined about five weeks' worth of profits. B. taken over and run by the government, pending reorganization. C. dismantled by the government, with different sectors in the bank sold to other banks in the system. D. fined nearly $1 trillion, and key executives were held criminally responsible.
One criticism of the unemployment rate is that it
A) is a stock measure. B) does not include people who are not working and are not looking for work. C) does not include the number of discouraged workers as unemployed. D) counts a new entrant that is actively seeking work as unemployed.