Multiple Choice
Deflation can leave households that have mortgages with negative equity. This means that:
A) deflation causes the value of the mortgage to fall.
B) deflation transfers wealth from the bank to the household with the mortgage.
C) deflation increases the real value of assets like housing.
D) deflation causes the value of the house to be lower than the outstanding balance of the
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Gross domestic product is calculated by adding
Q3: If the value of the price index
Q4: Which of the following is a drawback
Q5: What is meant by in?ation? How is
Q6: When would inflation targeting using interest rates
Q7: Suppose a person receives a salary of
Q8: If a union negotiates a wage above
Q9: _ accounts for the use of productive
Q10: How is national income at basic prices
Q11: Since the prices of goods and services