Unanticipated inflation: Select one: a. arbitrarily "taxes" fixed-income groups b. increases the real value of savings...
Homework Answers
Ans: a ) arbitrarily " taxes" fixed-income groups
Explanation:
Unanticipated inflation affects fixed income groups because the value of money or purchasing power of their fixed income decreases.
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Unanticipated inflation: Select one: a. arbitrarily "taxes" fixed-income groups b. increases the real value of savings...
Which of the following is a problem of unanticipated inflation? O A. Increases in taxes paid...
Which of the following is a problem of unanticipated inflation? O A. Increases in taxes paid by investors OB. Redistribution of income from borrowers to lenders O C. Redistribution of income from lenders to borrowers OD. Decreases in structural unemployment
1. The best definition of inflation is a(n): a temporary increase in prices. b. increase in...
1. The best definition of inflation is a(n): a temporary increase in prices. b. increase in the price of one important commodity such as food. c. persistent increase in the general level of prices as measured by a price index. d. increase in the purchasing power of the dollar. 2. Inflation: a. reduces the cost-of-living of the typical worker. b. is measured by changes in the cost of a typical market basket of goods between time periods. c. causes the...
Which of the following is NOT a problem that a demand-pulled, unanticipated inflation tends to create?...
Which of the following is NOT a problem that a demand-pulled, unanticipated inflation tends to create? Select one: a. Banks losing money because the real return on their loans falls O b. A decrease in the value of bonds and saving accounts c. A fall in wages for retirees with a fixed income d. Higher' unemployment rate in the economy O e. A fall in real wages.
1. All of the following groups can be hurt by unanticipated inflation, except: a- Lenders b-...
1. All of the following groups can be hurt by unanticipated inflation, except: a- Lenders b- Borrowers c- Retired People on Fixed Incomes d- Savers 2. The type of inflation that occurs because input prices (costs of production) have risen rapidly is: a- Deflation b- Demand-Pull Inflation c- Cost-Push Inflation d- Hyperinflation 3. Suppose that the CPI in 2000 was 176 and the CPI in 2001 was 178.4. Calculate the rate of inflation from 2000 to 2001. a- 2.4% b-...
7 & 8 7. For a person to keep his real income steady at a certain...
7 & 8
7. For a person to keep his real income steady at a certain level from one year to the next, his nominal income must A. rise if the price index falls. B. stay the same as the price index rises. C. fall if the price index rises. D. rise as fast as the price index. 8. A worker would be hurt least by inflation when the A. worker anticipates inflation and increases savings at the bank. B....
5 In the intertemporal model, the real interest rate increases, the following statement is wrong ()...
5 In the intertemporal model, the real interest rate increases, the following statement is wrong () A budget constraint line is steeper B Consumer endowment points change C. The present value of the consumer ’s lifetime wealth decreases D consumers will increase current consumption 6 In the intertemporal model, the effect of increasing real interest rates on lenders is () A Current consumption increases, future consumption increases B. Current consumption decreases, future consumption increases C Current consumption is uncertain, and...
A consequence of hyperinflation is that people O A. receive higher real wage hikes, which increases...
A consequence of hyperinflation is that people O A. receive higher real wage hikes, which increases their purchasing power for goods and services B. who make fixed-payment loans to others receive higher payments as inflation increases C. increase the quantity of money demanded O D. spend time trying to keep their money holdings near zero O E. want to lend funds because interest rates are so high. d select
Select one A the real rate, a default risk premium and expected inflation question B. the...
Select one A the real rate, a default risk premium and expected inflation question B. the real rate, expected inflation and a default risk premium C. expected inflation, a default risk premium and a maturity premium D. the real rate, expected inflation, and a maturity premium. 25 The is the face value of the bond. Select one 0 out of A coupon X B. maturity date question C. coupon tate D. par value 26 Vitmix Industries Inc. is issuing a...
17. When the inflation rate rises, the purchasing power of nominal income: a remains unchanged. c....
17. When the inflation rate rises, the purchasing power of nominal income: a remains unchanged. c. increases b. decreases d. changes by the inflation rate minus one. 18. Inflation is defined as an increase in: a real wages of workers. b. real GDP c. the average price level. d. all consumer products. 19. Those hurt by inflation include: a. labor unions with COLA clauses. b. borrowers. savers d. owners of real estate. e owners of precious metals, antiques, and works...
please answer them all - Rahul M Chartered Accounta. Find me a tutor 4. Suppose the price of health services rises b...
please answer them all
- Rahul M Chartered Accounta. Find me a tutor 4. Suppose the price of health services rises by 12 percent during a period while the level of average prices rise by 5 percent. We can suggest that the relative price of health services compared with price of other goods and services has: A. Increased B. Not changed C. Decreased D. Stabalized 5. Changes in relative prices may occur in a period of: P. Stable prices Q....
Which of the following is a problem of unanticipated inflation? O A. Increases in taxes paid by investors OB. Redistribution of income from borrowers to lenders O C. Redistribution of income from lenders to borrowers OD. Decreases in structural unemployment
1. The best definition of inflation is a(n): a temporary increase in prices. b. increase in the price of one important commodity such as food. c. persistent increase in the general level of prices as measured by a price index. d. increase in the purchasing power of the dollar. 2. Inflation: a. reduces the cost-of-living of the typical worker. b. is measured by changes in the cost of a typical market basket of goods between time periods. c. causes the...
Which of the following is NOT a problem that a demand-pulled, unanticipated inflation tends to create? Select one: a. Banks losing money because the real return on their loans falls O b. A decrease in the value of bonds and saving accounts c. A fall in wages for retirees with a fixed income d. Higher' unemployment rate in the economy O e. A fall in real wages.
7 & 8
7. For a person to keep his real income steady at a certain level from one year to the next, his nominal income must A. rise if the price index falls. B. stay the same as the price index rises. C. fall if the price index rises. D. rise as fast as the price index. 8. A worker would be hurt least by inflation when the A. worker anticipates inflation and increases savings at the bank. B....
A consequence of hyperinflation is that people O A. receive higher real wage hikes, which increases their purchasing power for goods and services B. who make fixed-payment loans to others receive higher payments as inflation increases C. increase the quantity of money demanded O D. spend time trying to keep their money holdings near zero O E. want to lend funds because interest rates are so high. d select
Select one A the real rate, a default risk premium and expected inflation question B. the real rate, expected inflation and a default risk premium C. expected inflation, a default risk premium and a maturity premium D. the real rate, expected inflation, and a maturity premium. 25 The is the face value of the bond. Select one 0 out of A coupon X B. maturity date question C. coupon tate D. par value 26 Vitmix Industries Inc. is issuing a...
17. When the inflation rate rises, the purchasing power of nominal income: a remains unchanged. c. increases b. decreases d. changes by the inflation rate minus one. 18. Inflation is defined as an increase in: a real wages of workers. b. real GDP c. the average price level. d. all consumer products. 19. Those hurt by inflation include: a. labor unions with COLA clauses. b. borrowers. savers d. owners of real estate. e owners of precious metals, antiques, and works...
please answer them all
- Rahul M Chartered Accounta. Find me a tutor 4. Suppose the price of health services rises by 12 percent during a period while the level of average prices rise by 5 percent. We can suggest that the relative price of health services compared with price of other goods and services has: A. Increased B. Not changed C. Decreased D. Stabalized 5. Changes in relative prices may occur in a period of: P. Stable prices Q....
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