Which of the following are consequences of inflation?
a. It increases the burdens on people with fixed incomes when inflation is not anticipated
b. It hurts savers who did not anticipate how high the inflation was, but helps those who have borrowed at a fixed rate before the inflation became apparent.
c. Inflation imposes costs on people who devote resources to protecting themselves from expected inflation.
d. all of the above
d
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A haircut (in finance) is ________
A) the payment of a block of funds as part of a refinancing arrangement B) the percentage by which the value of collateral exceeds the value of the loan C) the issue of equities rather than debt in acquiring access to money capital D) the immediate end of lending to subprime borrowers
A favorable balance of trade occurs when:
a. goods exports are greater than goods imports. b. goods imports are greater than goods exports. c. international trade is an increasing share of total output. d. the balance on capital account equals the balance on current account. e. unilateral transfers are positive.