An unanticipated increase in inflation will:
a. redistribute income from employers to workers.
b. redistribute income from lenders to borrowers.
c. redistribute income from borrowers to lenders.
d. do none of the above.
b
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Adverse selection occurs in the market for used cars because used car buyers
A) tend to have more accidents than new car buyers. B) have more information than used car sellers. C) have less information than used car sellers. D) have less incentive to maintain the value of their cars than new car buyers.
If the investment demand curve shifts to the left, then
A. The AD curve will shift to the left. B. The AD curve will not be affected. C. There will be upward movement along the AD curve. D. The AD curve will shift to the right.
An increase in the effective tax rate on capital would cause the IS curve to ________ and the LM curve to ________.
A. shift up and to the right; shift up and to the left B. shift up and to the right; be unchanged C. shift down and to the left; be unchanged D. shift down and to the left; shift up and to the left
The optimal hiring rule is to employ labor up to the point where:
a. wage = MFC. b. wage = MP. c. wage = MR d. wage = MRP e. wage = TWC.