If both borrowers and lenders anticipate the rate of inflation correctly, then
A. borrowers will lose real income.
B. lenders will lose real income.
C. both borrowers and lenders will lose real income.
D. neither borrowers nor lenders will lose real income.
Answer: D
You might also like to view...
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
If the monetary base does not change and the desired reserve ratio increases, the money multiplier ________ and the quantity of money ________
A) increases; decreases B) decreases; decreases C) increases; increases D) decreases; does not change E) decreases; increases
The market demand for wheat is Q = 100 - 2p + 1 , where is the price of barley. If the price of wheat is $2, the price elasticity of demand
A) equals (-4/46). B) equals (-46). C) equals (-1). D) cannot be calculated without more information.
In the Keynesian model, investment spending is an autonomous expenditure
a. True b. False Indicate whether the statement is true or false