Debtors gain and creditors lose when
A) the anticipated rate of inflation is greater than the actual rate of inflation.
B) the anticipated rate of inflation is less than the actual rate of inflation.
C) the anticipated rate of inflation is the same as the unanticipated rate of inflation.
D) the unanticipated rate of inflation is zero.
B
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Protectionism
Suppose that in 2011, 3 million plasma TVs were purchased at $950 each, while in 2012, 4 million plasma TVs were purchased at $800 each. What might have caused this change?
A) There were fewer workers in plasma TV manufacturing. B) The price of LCD TVs (a substitute for plasma TVs) rose. C) The price of LCD TVs (a substitute for plasma TVs) fell. D) There was an advance in plasma TV manufacturing technology.
According to John Maynard Keynes people hold money for each of these reasons except the _____ motive.
A. precautionary B. price C. speculative D. transactions
For a previously-illegal good, decriminalization will cause
A. supply to become less elastic. B. demand to increase. C. demand to become less elastic. D. price to rise, unambiguously.