Author Question: If the annual inflation rate in an economy is negative, the purchasing power of a dollar: A) will ... (Read 116 times)

jparksx · **on:** Jun 30, 2018

If the annual inflation rate in an economy is negative, the purchasing power of a dollar:

A) will remain the same over time.
B) will increase over time.
C) will decrease over time.
D) can increase or decrease depending on the nominal interest rate.

Question 2

While the budget deficit represents a ________, the public debt represents a ________.

A) flow; flow B) stock; flow C) flow; stock D) stock; stock