Multiple Choice
Which of the following is FALSE?
A) wage indexation is widespread in the U.S.
B) the economy will adjust to supply shocks more easily if there is widespread wage indexation
C) the holder of an indexed government bond will lose if an increase in inflation is unanticipated
D) the government loses real tax revenue if there is an unanticipated increase in the inflation rate
E) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
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