Which statement about inflation is correct?
A. Families are always hurt by inflation
B. Inflation "subsidizes" those who receive relatively fixed money income
C. The redistributive effects of inflation are arbitrary with respect to people and groups in society
D. Inflation will decrease the real value of property assets and increase the real value of fixed-
value assets
C. The redistributive effects of inflation are arbitrary with respect to people and groups in society
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In the public choice (or new political economy) approach to development the emphasis is on
a. growth in the rural sector. b. the self-interested behavior of public officials. c. the dependence of LDCs on former colonial powers. d. the inherent efficiency of developing country markets.
According to Keynes, the key difference between money and bonds is that
A) money is an asset. B) bonds are an asset. C) money is less risky. D) bonds are tax exempt.