One of the costs associated with predictable inflation is:
A. tax distortions.
B. budget charges.
C. overheads.
D. the re-distribution of purchasing power.
A. tax distortions.
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Most doctors and hospitals operate as private businesses in all of the following countries except
A) the United Kingdom. B) the United States. C) Japan. D) Canada.
If a firm expects that the price of its product will be lower in the future than it is today
A) the firm has an incentive to decrease supply now and increase supply in the future. B) the firm will not change supply until it knows for certain what will happen to its price. C) the firm has an incentive to increase quantity supplied now and decrease quantity supplied in the future. D) the firm has an incentive to increase supply now and decrease supply in the future.
A depreciation of the dollar under perfect capital mobility would cause
a. the LM curve to shift to the left. b. the LM curve to shift to the right. c. the IS curve to shift to the right. d. the IS curve to shift to the left. e. the BP curve to shift up.
Wages and prices are many times higher today than they were 30 years ago, yet people do not work a lot more hours or buy fewer goods. How can this be?