Which of the following is true about inflation?
a. Inflation is favored by the poor because they have less money.
b. Inflation is more damaging if it is anticipated.
c. Inflation is more damaging to the poor because they have less money.
d. Those who lend money at a rate below the rate of inflation suffer economic losses.
e. If people can accurately anticipate inflation, no one gains or loses from it.
D
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For resources whose property rights are not well-defined or well-enforced,
A) people have an incentive to acquire as much of the resource as possible for themselves before someone else does. B) people have no incentive to acquire the resource since they do not have the property rights to that resource. C) people have little incentive to acquire the resource because if the the property rights are not well-defined or well-enforced, they are most likely of little value. D) people have an incentive to acquire a limited amount of that resource for personal use, but no more than they can use personally.
In the Keynesian cross diagram, if the aggregate expenditure line intersects the 45-degree line at potential GDP, then the economy is in recession
a. True b. False Indicate whether the statement is true or false