An unstable inflation rate

a. always redistributes real income from lenders to borrowers.
b. always redistributes real income from borrowers to lenders.
c. adds to the risk of borrowing and lending and interferes with long-run financial planning.
d. makes goods and services too expensive.
e. always redistributes real income from taxpayers to the government.

C

Economics

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All of the following are barriers to international investment EXCEPT

A) adverse selection. B) incomplete information. C) moral hazard. D) symmetric information.

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In an open economy, an increase in saving might not cause an increase in domestic investment. Why not? Does that mean that an increase in saving is undesirable?

What will be an ideal response?

Economics