Which of the following is not an example of inflation causing a redistribution of income because the inflation was unanticipated?
A) A bank collects a lower amount of interest from a loan because inflation was under -predicted.
B) Firms have to hire an extra worker to change prices in its store because of inflation.
C) A worker receives a raise in salary that is less than the rate of inflation, because management under -predicted inflation.
D) A bond -holder pays a higher tax and has less after -tax real income because of inflation.
Correct Answer:
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Q9: Q10: Q11: Suppose your grandfather earned a salary of Q12: Q13: Suppose that in 2011 all prices in Q14: For bondholders, the government taxes the _ Q15: If inflation increases, Q16: Q17: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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A) real after -tax bond![]()
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