If the inflation rate is lower than expected, real income is redistributed from lenders to borrowers
a. True
b. False
B
You might also like to view...
Who gains from imports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from imports?
What will be an ideal response?
Suppose the money wage rate and the price level both fall by 5 percent. As a result
A) the quantity of labor demanded increases. B) the quantity of labor demanded decreases. C) the quantity of labor demanded does not change because there is no change in the real wage. D) people are worse off and there is more unemployment.
Which of the following is not true with respect to underwriting?
A) Announcements of successful underwritings are called tombstones. B) Often a number of investments banks band together in a syndicate to market a new issue. C) Underwritings of new issues take place on the floor of the New York Stock Exchange. D) The investment bank typically guarantees an issuer of securities a price on the new issue.
A consumer values a car at $525,00 . and a producer values the same car at $485,000 . If the transaction is completed at $510,000 . the transaction will generate:
a. No surplus b. $25,00 . worth of seller surplus and unknown amount of buyer surplus c. $15,00 . worth of buyer surplus and $25,00 . of seller surplus d. $25,00 . worth of buyer surplus and unknown amount of seller surplus