What is the output effect of inflation?
A) It involves the effect of uncertain inflation rates on the level of investment spending.
B) It is probably as much as 10 - 20% of GDP per year.
C) It is reduced as the level of growth rises.
D) It would be higher if the risks of investing were higher.
Correct Answer:
Verified
Q86: Which of the following statements is correct
Q87: What is the real rate of interest?
A)It
Q88: Why is deflation undesirable?
A)Because it causes a
Q89: If the rate of inflation is 7%
Q90: Why is inflation undesirable?
A)It redistributes income and
Q92: Assume that in 2016,prices increased by 2%
Q93: How can the percentage change in real
Q94: Which of the following is correct?
A)If nominal
Q95: What is deflation?
A)A fall in the price
Q96: How is the real interest rate determined?
A)By
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