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The Canadian Consumer Price Index Fell from 9

Question 104

Multiple Choice

The Canadian consumer price index fell from 9.2 in 1929 to 7.1 in 1933.Consequently,a Canadian who saved Canadian dollars in a piggybank from 1929 to 1933 received a windfall gain equivalent to a real rate of return of _______ on his piggybank savings.Such a high real return on cash hoarding suggests that savers would have ________ incentive to make their money available for productive investments during periods of ________.


A) 17.4%;little;inflation
B) 18.1%;strong;deflation
C) 22.8%;little;deflation
D) 21.5%;strong;inflation
E) 29.6%;little;deflation

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