A legitimate objection to the government issuance of "indexed" bonds is that they
A) are more of a drain on the Treasury than conventional bonds.
B) can encourage inflation and weaken policy resistance to it.
C) discourage saving when inflation is reduced.
D) further discourage the use of money and thus increase shoe-leather costs.
B
Economics
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A normal good is a good for which demand
A) decreases when income increases. B) increases when income increases. C) decreases when population increases. D) increases when population increases.
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The present discounted value of a future payment becomes smaller when
A) the nominal interest rate decreases. B) the payment is made sooner rather than later. C) the payment itself decreases. D) all of the above E) none of the above
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