Which of the following is true about inflation?
a. Inflation promotes social harmony by uniting people against the government
b. Inflation is more damaging if it is unanticipated.
c. Accurate anticipation of inflation is possible for everyone who is well informed about economic events.
d. Those who lend money at a rate above the rate of inflation suffer economic losses.
e. If people accurately anticipate inflation, their actions will prevent it.
b
Economics
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Refer to Table 4.2. If you choose to invest in Japanese bonds, your investment return from Scenario C will be
A) -3%. B) -1%. C) 2%. D) 5%.
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Advantages of specialization do not include: a. reduced interdependence
b. the exploitation of comparative advantage. c. the ability to utilize more complex production processes. d. Productivity gains from learning by doing.
Economics