Multiple Choice
Which of the following statements is true?
A) inflation makes nominal interest rates rise
B) unanticipated inflation redistributes wealth from debtors to creditors
C) inflation increases the purchasing power of households on fixed incomes
D) the simple money multiplier is the inverse of the discount rate
Correct Answer:
Verified
Correct Answer:
Verified
Q24: The Federal Reserve System is responsible for
Q25: A monetary rule calls for establishing an
Q26: Nominal income refers to the physical amounts
Q27: An easy money policy is the appropriate
Q28: Supply-side economic policies used tax reductions in
Q30: Inflation tends to redistribute income from creditors
Q31: The discount rate is a tool of
Q32: Cost-push inflation originates from the supply side
Q33: Management of the money supply is the
Q34: Inflation tends to increase the purchasing power