Assume you financed a new house with a 30-year fixed rate mortgage at a 6% annual interest. rate. If you can deduct your mortgage interest payments from your taxable income and you are in the 30% tax bracket, what would be the real after-tax cost of borrowing if the average annual inflation rate is 4.2% over the 30-years period?
A. 0.042
B. 0.018
C. 0.012
D. -0.012
查看答案
In which time period was the average real yield on a three-month Treasury bill the highest?
A. 1960 to 1969
B. 1970 to 1979
C. 1980 to 1989
D. 1990 to 1999
E. 2000 to 2009
If people always perfectly anticipated and adjusted to the inflation rate, then
A. real interest rates would be zero
B. there would be no menu costs
C. they would still have to worry about shoe-leather costs
D. the costs of inflation to society would be zero
E. none of the above
Which of the following is FALSE, if an increase in the inflation rate cannot be perfectly anticipated?
A. there will be a redistribution of income and wealth
B. debtors will benefit while creditors will lose
C. the holder of an indexed government bond will lose
D. the government will gain real tax revenue
E. the real value of government debt will decline
Which of the following is FALSE?
A. wage indexation is widespread in the U.S.
B. the economy will adjust to supply shocks more easily if there is widespread wage indexation
C. the holder of an indexed government bond will lose if an increase in inflation is unanticipated
D. the government loses real tax revenue if there is an unanticipated increase in the inflation rate
E. all of the above
微信支付 
支付宝支付