Author Question: One cost of unanticipated inflation is A) nominal income falls below real income. B) both lenders ... (Read 215 times)

waynest · **on:** Jun 30, 2018

One cost of unanticipated inflation is

A) nominal income falls below real income. B) both lenders and borrowers lose.
C) arbitrary redistributions of income. D) people cannot repay their debts.

Question 2

When the nominal interest rate falls, there is

A) a leftward shift of the demand for money curve.
B) a downward movement along the demand for money curve.
C) no movement along the demand for money curve and the curve does not shift.
D) a rightward shift of the demand for money curve.
E) an upward movement along the demand for money curve.