Which of the following describes a situation in which the person is hurt by inflation?
A) a person who lends money during a period when inflation is over-predicted
B) a person who borrows money during a period when inflation is under-predicted
C) a person paid a fixed income during an inflationary period
D) a retiree whose pension is adjusted for inflation
C
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If slope = 2 for a line on a graph with x on the horizontal axis and y on the vertical axis, then if
a. x decreases by 4, y decreases by 8 b. x = -4, then y = -2 c. y decreases by 4, x decreases by 8 d. x = -4, y = -8 e. x increases by 4, y decreases by 8
The real interest rate is calculated as the
a. expected rate of inflation divided by the nominal interest rate b. real GDP plus the expected rate of inflation c. nominal interest rate minus real GDP d. nominal interest rate minus the expected rate of inflation e. real GDP multiplied by the expected rate of inflation
Expansionary monetary policy will decrease interest rates and decrease the velocity of money.
Answer the following statement true (T) or false (F)
Why does the trade-off between consumption goods and capital goods represent a trade-off between the present and the future?
What will be an ideal response?