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A Legitimate Objection to the Government Issuance of "Indexed" Bonds

Question 42

Multiple Choice

A legitimate objection to the government issuance of "indexed" bonds is that they


A) are more of a drain on the Treasury than conventional bonds.
B) can encourage inflation and weaken policy resistance to it.
C) discourage saving when inflation is reduced.
D) further discourage the use of money and thus increase shoe-leather costs.

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