Suppose the economy consists of two distinct groups: wage earners and goods sellers. If the price level increases by 30 percent and real wages increase by 30 percent,
a. there will be no redistribution of purchasing power between goods sellers and wage earners
b. purchasing power will be redistributed from wage earners to goods sellers
c. purchasing power will be redistributed from goods sellers to wage earners
d. nominal wages will increase by 90 percent
e. nominal wages will decrease by 60 percent
C
Economics
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If inflation is higher in the home market, what is expected to happen to the real value of the home currency as time passes?
What will be an ideal response?
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The double taxation of capital gains can be justified _____
a. on the ability-to-pay principle b. on efficiency grounds c. on the grounds that government needs more revenue d. on the benefit principle
Economics