Multiple Choice
An unanticipated increase in inflation is a problem since
A) gains and losses from real wealth transfers cannot be easily predicted
B) higher inflation always means lower growth in real GDP
C) it will lead to a decrease in nominal wages
D) households who hold fixed dollar assets will experience a higher real rate of return
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Labor contracts that include so-called COLA provisions<br>A)tend
Q2: Which of the following is FALSE?<br>A)automatic cost-of-living
Q3: People should be concerned about imperfectly anticipated
Q5: The unanticipated inflation of the last several
Q6: If you had $1,000 in a savings
Q7: If inflation were always perfectly anticipated, then<br>A)its
Q8: The view that a small positive rate
Q9: The concern over inflation<br>A)is not justified since
Q10: The redistribution effect that arises from an
Q11: If you had owned a ten-year Treasury