If the price level is falling,all of the following are true except
A) Lenders are better off.
B) Businesses are reluctant to borrow money.
C) Purchasing power increases.
D) Borrowers are not affecteD.Borrowers are affected in that the debts they must repay are paid back with dollars worth more than what they borrowed.
Correct Answer:
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Q41: When people make decisions on the basis
Q43: The uncertainty that results from inflation causes
Q44: Money illusion is the
A)Use of nominal dollars
Q45: Q45: Hyperinflation is Q47: Last year you earned $20,000 and paid Q50: Speculation during periods of inflation can result Q51: Which of the following is a macro Q54: Inflation affects production decisions because it Q57: The movement of taxpayers into higher tax
A)An inflation rate in excess of
A)Decreases input
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