Multiple Choice
Why are creditors harmed by unexpected inflation?
A) Creditors receive lower nominal rates of interest when prices rise.
B) Creditors are paid back money with less spending power than when it was originally loaned out.
C) Creditors receive higher nominal rates of interest when prices rise.
D) Creditors are paid back with more valuable dollars.
Correct Answer:
Verified
Correct Answer:
Verified
Q101: In November 2008,the labour force in Centraltown
Q102: What is the term for unemployment resulting
Q103: What do economists consider a person who
Q104: During an inflationary period,who are most likely
Q107: What do economists consider persons who do
Q108: What is the term for the type
Q109: Which of the following will equal zero
Q110: Economists refer to the median or "typical"
Q111: If the CPI was 100 in the
Q142: Another name for the contractionary phase of