Tina Eckstrom and her husband bought a deferred annuity that started paying them 700 a month in retirement benefits. They, along with millions of other people who live on fixed incomes, are examples of:
a. those who are responsible for inflation.
b. the big winners from inflation.
c. the big losers from inflation.
d. the paradox of thrift.
e. stock market losers.
Question 2
Supply-side economics is based on the theory that:
a. budget deficits will stimulate demand, output, and employment.
b. budget deficits will lead to higher interest rates, which will weaken their expansionary impact.
c. higher tax rates will increase tax revenues.
d. increases in aggregate supply lower the price level.
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