If this year's inflation rate was lower than expected, then
A. a transfer of wealth from the poor to the rich would occur
B. the government would gain tax revenues unless it had an indexed tax system
C. lenders would gain at the expense of borrowers
D. borrowers would gain at the expense of lenders
E. nominal wage rates would increase
查看答案
A zero inflation target
A. eliminates the short-run unemployment-inflation tradeoff
B. is almost impossible to achieve since it would require an extremely high natural rate of unemployment
C. can only be achieved if wage indexation is implemented nationwide
D. will have much lower costs than an explicit target of achieving a 4% long-term inflation rate
E. may not be as good as a positive inflation target, because it makes it more difficult to achieve full employment
If the yearly inflation rate could be always be perfectly anticipated, then
A. currency holders would still have a negative rate of return
B. menu costs would still arise
C. people would still have to worry about shoe-leather costs
D. the costs of inflation to society would be small
E. all of the above
Which of the following is TRUE, if inflation could be always perfectly anticipated?
A. no costs to society arise from inflation
B. there are no shoe-leather costs
C. there are no menu costs
D. currency holders would not experience any loss of purchasing power
E. none of the above
If you had $3,000 in a savings account that paid 5% interest compounded annually, how much would you have in your account after five years?
A. 3484
B. 3629
C. 3750
D. 3829
E. 4224
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