One cost of a perfectly anticipated inflation is that it

A) transfers wealth from lenders to borrowers.
B) transfers wealth from borrowers to lenders.
C) increases menu costs.
D) damages the role of prices as signals in the economy.

C

Economics

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An automatic increase in a wage rate found in some contracts is known as a

A) change of labor agreement. B) cost of labor arrangement. C) cost of living adjustment. D) charge for living amendment.

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Receipt of foreign aid permits less-developed countries to move to a point outside their production possibilities curve

a. True b. False Indicate whether the statement is true or false

Economics