Which one of the following statements about deflation is false?
a. Deflation is good for lenders.
b. Deflation is bad for borrowers.
c. Deflation boosts people's real incomes.
d. Deflation raises the burden of carrying debt.
e. During the last half of the 20th century, the U.S. economy has experienced deflation for more years than it experienced inflation.
E
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Explain how the Fed intervenes in the foreign exchange market and what the effects are of the Fed's actions
What will be an ideal response?
According to the HO model, countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other
Indicate whether the statement is true or false
The Solow residual attempts to measure the amount of output not explained by
A) technological progress. B) the direct contribution of labor and capital. C) economic projections. D) the amount of a nation's human capital.
During the Reagan administration, the Laffer curve was used to ague that:
a. the supply-side effects of tax cuts are relatively small. b. discretionary tax cuts are unwise because they create stagflation. c. lower income tax rates could increase tax revenues. d. a "flat tax" would simplify the tax code and stimulate economic growth.