A) both debtors and creditors would have reduced real wealth.
B) both debtors and creditors would have increased real wealth.
C) debtors would gain at the expense of creditors.
D) creditors would gain at the expense of debtors.
Correct Answer
verified
Correct Answer
verified
A) higher than he had expected,and the real value of the loan is higher than he had expected.
B) higher than he had expected,and the real value of the loan is lower than he had expected.
C) lower than he had expected,and the real value of the loan is higher than he had expected.
D) lower then he had expected,and the real value of the loan is lower than he had expected.
Correct Answer
verified
Correct Answer
verified
A) The Wizard of Oz
B) Mary Poppins
C) It's a Wonderful Life
D) Trading Places
Correct Answer
verified
Correct Answer
verified
A) transferred wealth from the borrower to you and caused your after-tax real interest rate to be 0.5 percentage points higher than what you had expected.
B) transferred wealth from the borrower to you and caused your after-tax real interest rate to be more than 0.5 percentage points higher than what you had expected.
C) transferred wealth from you to the borrower and caused your after-tax real interest rate to be 0.5 percentage points lower than what you had expected.
D) transferred wealth from you to the borrower and caused your after-tax real interest rate to be more than 0.5 percentage points lower than what you had expected.
Correct Answer
verified
Correct Answer
verified
A) transfers wealth from the government to households.
B) is the increase in real income taxes due to lack of indexation in income tax rules.
C) is a tax on everyone who holds money.
D) All of the above are correct.
Correct Answer
verified
Correct Answer
verified
A) for those who save than for those who borrow.
B) for those who hold a little money than for those who hold a lot of money.
C) for those whose wages increase by as much as inflation than those who are paid a fixed nominal wage.
D) for savers in low income tax brackets than for savers in high income tax brackets.
Correct Answer
verified
Correct Answer
verified
A) higher than she had expected,and the real value of the loan is higher than she had expected.
B) higher than she had expected,and the real value of the loan is lower than she had expected.
C) lower than she had expected,and the real value of the loan is higher than she had expected.
D) lower then she had expected,and the real value of the loan is lower than she had expected.
Correct Answer
verified
Correct Answer
verified
A) it is less than the percentage increase in nominal income.
B) it is less than the nominal return on saving.
C) it equals the growth rate of real GDP in the long run.
D) it distorts relative prices,causing a misallocation of resources.
Correct Answer
verified
Correct Answer
verified
A) creditors receive a lower real interest rate than they had anticipated.
B) creditors pay a lower real interest rate than they had anticipated.
C) debtors receive a higher real interest rate than they had anticipated.
D) debtors pay a higher real interest rate than they had anticipated.
Correct Answer
verified
Correct Answer
verified
A) -60 percent
B) -30 percent
C) 30 percent
D) 60 percent
Correct Answer
verified
Correct Answer
verified
A) make less frequent trips to the bank and firms make less frequent price changes.
B) make less frequent trips to the bank while firms make more frequent price changes.
C) make more frequent trips to the bank while firms make less frequent price changes.
D) make more frequent trips to the bank and firms make more frequent price changes.
Correct Answer
verified
Correct Answer
verified
A) for those who borrow than for those who save.
B) for those who hold a little money than for those who hold a lot of money.
C) for those whose wages increase by as much as inflation than for those who are paid a fixed nominal wage.
D) for savers in high income tax brackets than for savers in low income tax brackets.
Correct Answer
verified
Correct Answer
verified
A) high and it turns out to be high.
B) low and it turns out to be low.
C) low and it turns out to be high.
D) high and it turns out to be low.
Correct Answer
verified
Correct Answer
verified
A) Increases in the price level can be created by increases in money demand.
B) Nominal incomes tend to rise at the same time that the price level is rising.
C) As the price level rises,the value of a dollar falls.
D) Inflation only changes nominal variables.
Correct Answer
verified
Correct Answer
verified
A) more frequent price changes.This raises their menu costs.
B) more frequent price changes.This reduces their menu costs.
C) less frequent price changes.This raises their menu costs.
D) less frequent price changes.This reduces their menu costs.
Correct Answer
verified
Correct Answer
verified
A) menu costs and shoeleather costs
B) menu costs but not shoeleather costs
C) shoeleather costs but not menu costs
D) menu costs but not shoeleather costs.
Correct Answer
verified
Correct Answer
verified
A) rises,and people desire to hold more money.
B) rises,and people desire to hold less money.
C) falls,and people desire to hold more money.
D) falls,and people desire to hold less money
Correct Answer
verified
Correct Answer
verified
A) both interest income and capital gains.
B) interest income but not capital gains.
C) capital gains but not interest income.
D) neither interest income nor capital gains.
Correct Answer
verified
Correct Answer
verified
A) the redistributional effects of unexpected inflation.
B) the time spent searching for low prices when inflation rises.
C) the waste of resources used to maintain lower money holdings.
D) the increased cost to the government of printing more money.
Correct Answer
verified
Correct Answer
verified
A) inflation is 6%,the pre-tax real interest rate is 3%,and the tax rate is 20%.
B) inflation is 6%,the pre-tax real interest rate is 3%,and the tax rate is 25%.
C) inflation is 4%,the pre-tax real interest rate is 2%,and the tax rate is 20%.
D) inflation is 4%,the pre-tax real interest rate is 2%,and the tax rate is 25%.
Correct Answer
verified
Correct Answer
verified
Showing 21 - 40 of 94
Related Exams