Author Question: In general, the only thing that can cause a sustained increase in the rate of inflation is: a. a ... (Read 650 times)

tiara099 · **on:** Jun 30, 2018

In general, the only thing that can cause a sustained increase in the rate of inflation is:
a. a high rate of growth in the supply of money.
b. a significant increase in unemployment.
c. a decrease in real GDP.
d. an increase in federal income taxes.

Question 2

Which of the following groups would not tend to lose from unexpected inflation?
a. Retirees on fixed pensions.
b. Creditors.
c. Those whose incomes are tied to long-term contracts.
d. Those whose wages have cost of living adjustment clauses in their contracts.