If actual inflation is greater than the expected rate of inflation, then probably
A. the borrowers are made better off than lenders.
B. the borrowers are made worse off than lenders.
C. creditors gain at the expense of borrowers.
D. savings accounts have increased in real terms.
Answer: A
You might also like to view...
Which of the following institutions is NOT part of the structure of the Federal Reserve system?
A) The Federal Open Market Committee B) The Federal Reserve Banks C) The Board of Governors D) The Federal Government
To find the economy's marginal benefit curve for a public good, you would
A) average the individual marginal benefit curves horizontally. B) average the individual marginal benefit curves vertically. C) sum the individual marginal benefit curves horizontally. D) sum the individual marginal benefit curves vertically.
Suzy spends all of her income on potato chips and textbooks. To maximize her total utility, she should
a. allocate her income so that the marginal utilities of potato chips and textbooks are equal b. allocate her income so that the marginal utilities per dollar spent on potato chips and textbooks are equal c. change her eating habits d. choose a consumption point that is inside her budget constraint e. allocate her income so that the total utilities of potato chips and textbooks are equal
If rent-seeking behavior does occur, then the deadweight loss from monopoly practices is smaller than it otherwise would be
Indicate whether the statement is true or false