If inflation is anticipated, some effects of inflation on the redistribution of income can be avoided
Indicate whether the statement is true or false
TRUE
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Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock ________ relative to U.S
Treasury bonds and the demand for GE stock ________. A) rises; rises B) rises; falls C) falls; rises D) falls; falls
The slope of a straight line
A) is the same at all points along that line. B) cannot be defined. C) changes from one point to the next on that line. D) is always equal to zero.
In practice, regulatory boards try to set the price of a natural monopoly so that price:
A. equals marginal cost. B. covers all explicit costs. C. is constant over time. D. includes all costs plus a normal return on capital investment.
If the CPI declines from 300 to 270, the price level fell by _____ percent.
Fill in the blank(s) with the appropriate word(s).