If short-term government bond rates were indexed

A) such bonds would be a poor hedge against inflation.
B) banks and saving and loan institutions would likely lose deposits.
C) the government would gain from the implied inflation tax.
D) the government would gain from the implied inflation subsidy.

B

Economics

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In a small economy in 2016, aggregate expenditure was $850 million while GDP that year was $800 million. Which of the following can explain the difference between aggregate expenditure and GDP that year?

A) Aggregate expenditure is always less than GDP in developing countries. B) Aggregate expenditure is always less than GDP in developed countries. C) Firm investment in inventories was less than anticipated in 2016. D) Firm investment in inventories was greater than anticipated in 2016.

Economics

Refer to Table 19-17. What is nominal GDP in 2011?

A) $3,320 B) $3,690 C) $6,360 D) $7,035

Economics