Unanticipated inflation tends to penalize:
A. people who save money in financial institutions.
B. businesses that borrow money from financial institutions.
C. individuals who borrow money from financial institutions.
D. governments that have a progressive personal income tax.
Answer: A
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Some nations try to nurture and encourage new firms with lots of promise, so they protect them from foreign competition. This is called the _________ argument for trade protection.
a. home nation unemployment b. level playing field c. efficiency d. infant industry
According to aggregate demand and supply analysis, the negative demand shock of 2000-2004 had the effect of
A) increasing aggregate output, lowering unemployment, and raising inflation. B) decreasing aggregate output, raising unemployment, and raising inflation. C) increasing aggregate output, lowering unemployment, and lowering inflation. D) decreasing aggregate output, raising unemployment, and lowering inflation.