Inflation decreases the growth of capital because
i. when the after-tax real interest rate falls, savings decreases.
ii. velocity increases when inflation increases.
iii. the higher the inflation rate, the higher is the true income tax rate on income from capital.
A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Question 2
The net international investment position reflects the domestic holding of foreign assets minus foreign holdings of domestic assets.
Indicate whether the statement is true or false
