Inflation redistributes income to a greater extent when the inflation is unanticipated compared to when the inflation is anticipated

Indicate whether the statement is true or false

TRUE

Economics

You might also like to view...

A price floor policy establishes a minimum price for a market, and the policy is said to be binding if the market equilibrium price is less than the floor price. What impact does a binding price floor have on the market outcome?

A. Shortage B. Excess demand C. Excess supply D. No impact, and the market price and quantity equal their equilibrium values

Economics

Qualifying for admission to the Eurozone requires a nation to:

A) petition for membership with the European parliament. B) demonstrate a commitment to democratic principles and take an antiterrorist stance. C) peg its exchange rates to the euro and demonstrate fiscal responsibility for a length of time. D) join the IMF and the UN, and be recommended by other members.

Economics