High and unexpected inflation has a greater cost
a. for those who save than for those who borrow.
b. for those who hold a little money than for those who hold a lot of money.
c. for those whose wages increase by as much as inflation than those who are paid a fixed nominal wage.
d. for savers in low income tax brackets than for savers in high income tax brackets.
a
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Open market operations refer to the buying and selling of ________ by the ________ to control the money supply
A) Treasury securities; Federal Reserve B) stocks and bonds; Treasury Department C) stocks and bonds; Federal Reserve D) Treasury securities; Treasury Department
________ in the expected future domestic exchange rate causes the demand for domestic assets to decrease and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
Suppose that you take $500 from under your mattress and deposit it into your checking account. Assuming a required reserve ratio of 10%, what is the largest amount by which the money supply can increase as a result of your action
What will be an ideal response?
Countries gain from specializing in producing goods in which they have ________ and trading for goods in which other countries have ________
A) a comparative advantage; an absolute advantage B) an absolute advantage; an absolute advantage C) a comparative advantage; a comparative advantage D) an absolute advantage; a comparative advantage