Liquidity refers to the ability of an asset to hold its value in periods of inflation
a. True
b. False
Indicate whether the statement is true or false
False
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According to economists, which of the following statements about international capital mobility is CORRECT?
a. International resource mobility has had no effect upon world GDP. b. International resource mobility has had a negative effect upon world GDP. c. International resource mobility has had a positive effect upon world GDP. d. International resource mobility has had such a small effect upon world GDP that it is not worth measuring.
Assume that there is a fixed rate of interest on contracts for borrowers and lenders. If unanticipated inflation occurs in the economy, then:
A. Both lenders and borrowers benefit B. Both lenders and borrowers are hurt C. Borrowers are hurt, but lenders benefit D. Lenders are hurt, but borrowers benefit