Which of the following is an example of someone with inflationary expectations taking a step designed to insulate themselves from the higher expected rates of inflation?
a. a consumer deciding to delay the purchase of a new home or automobile
b. a consumer who borrows money at a fixed interest rate in order to purchase a new home or automobile
c. an investor who borrows funds at an adjustable money interest rate (one that automatically increases with higher inflation)
d. a home buyer who borrows funds at a variable interest rate
B
Economics
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Fill in the blanks: ________ is defined as a sustained ________ in the purchasing power of money
A) Inflation; fall B) Deflation; fall C) Inflation; rise D) Answers B and C above are both true.
Economics
When a seller knows more about the condition of a used car than the buyer does, the information is said to be asymmetric
a. True b. False
Economics