Which of the following will benefit by an unexpected increase in inflation?
a. a union member with a COLA wage contract
b. someone with a large stash of cash in a safe deposit box
c. a bank lending money at a fixed rate of interest
d. a person who is not due to receive a pay raise for another 11 months
a. a union member with a COLA wage contract
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The term externalities refers to
A) consequences of action not taken into account in making decisions. B) social interactions associated with urban-industrial economies. C) the superficial consequences of decisions. D) the visible consequences of decisions.
If a country has attracted a relatively large number of foreign workers and a large amount of foreign investment,
a. national income will generally exceed gross national product. b. gross national product will generally exceed gross domestic product. c. net domestic product will generally exceed gross domestic product. d. gross domestic product will generally exceed gross national product.
All of the following are costs of expected inflation except
A) seigniorage. B) menu costs. C) velocity costs. D) tax distortions.
According to the graph shown, consumer surplus is:
A. $10.
B. $15.
C. $20.
D. $30