If the rate of inflation in a given time period turns out to be higher than lenders and borrowers anticipated, then the effect will be:
a. no change in the distribution of wealth between lenders and borrowers.
b. a net gain in purchasing power for lenders relative to borrowers.
c. a redistribution of wealth from borrowers to lenders.
d. a redistribution of wealth from lenders to borrowers.
d
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A person who is unemployed because of a mismatch between the person's skills and current employment requirements is experiencing
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.
Other things constant, which of the following would cause the M1 money supply to decline?
a. an increase in the quantity of U.S. currency held overseas b. a shift of funds from interest-earning checking deposits to money market mutual funds c. a reduction in the general public's holdings of currency outside of banks because debit cards have become more popular and widely accepted d. a shift of funds from money market mutual funds into stock and bond mutual funds because the fees to invest in the latter have declined