A lender need not be penalized by inflation if the
A. long-term rate of inflation is less than the short-term rate of inflation.
B. short-term rate of inflation is less than the long-term rate of inflation.
C. lender correctly anticipates inflation and increases the nominal interest rate accordingly.
D. inflation is unanticipated by both borrower and lender.
C. lender correctly anticipates inflation and increases the nominal interest rate accordingly.
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What are the lags in fiscal policy that decrease its effectiveness?
a. recognition, execution, and legislative lags b. recognition, legislative, and completion lags c. implementation, legislative, and recognition lags d. implementation, recognition, and completion lags
Which of the following statements accurately characterizes the effects of minimum-wage laws?
a. Some workers who might have been employed at a lower wage become unemployed. b. Those workers who remain employed benefit from a higher wage. c. The effects of minimum-wage laws depend strongly on the elasticity of demand. d. All of the above accurately characterize the effects of minimum-wage laws.
The demand for Canadian cheese by a U.S. store is also a
A) demand for Canadian dollars. B) demand for SDRs. C) supply of U.S. dollars. D) supply of Canadian dollars.
Lisa eats both pizzas and burritos. If the price of a pizza increases, Lisa's opportunity set
A) becomes larger. B) becomes smaller. C) is unchanged. D) cannot be determined without more information.