The concern over inflation
A: is not justified since gains and losses from real wealth transfers cancel out over time for the economy as a whole
B: is irrational since high inflation generally means high growth
C: is attributable primarily to increased transfers arising from cost-of-living adjustments
D: stems from the fact that inflation is rarely predictable and those households who hold fixed dollar assets will experience a loss in wealth
E: none of the above
A: is not justified since gains and losses from real wealth transfers cancel out over time for the economy as a whole
B: is irrational since high inflation generally means high growth
C: is attributable primarily to increased transfers arising from cost-of-living adjustments
D: stems from the fact that inflation is rarely predictable and those households who hold fixed dollar assets will experience a loss in wealth
E: none of the above
举一反三
- The inflation tax A: transfers wealth from the government to households. B: is the increase in real income taxes due to lack of indexation in income tax rules. C: is a tax on everyone who holds money. D: All of the above are correct.
- The inflation tax<br/>() A: transfers wealth<br/>from the government to households. B: is the increase<br/>in income taxes due to lack of indexation. C: is a tax on<br/>everyone who holds money. D: All of the above<br/>are correct.
- The inflation tax__________ A: transfers<br/>wealth from the government to households. B: is<br/>the increase in income taxes due to lack of indexation. C: is<br/>a tax on everyone who holds money. D: All<br/>of the mentioned are correct.
- Generally, the holder of a government bond that is indexed to the price level knows A: either the interest rate, the principal, or both are adjusted for inflation B: the real interest rate will fluctuate with inflation C: there will be no losses as long as inflation is anticipated, but losses can occur if there is an unanticipated increase in the inflation rate D: all of the above E: none of the above
- What are the problems the U.S. economy has faced from time to time? A: Inflation B: Depressions C: Recessions D: All of the above