Author Question: When inflation is much higher than expected, which of the following is true? a. Nominal incomes are ... (Read 59 times)

silviawilliams41 · **on:** Jun 30, 2018

When inflation is much higher than expected, which of the following is true?
a. Nominal incomes are lower than expected.
b. Real interest rates are higher than expected.
c. Income is redistributed from those whose expenditures are fixed toward those who receive a fixed income.
d. Nominal interest rates are lower than expected.
e. Real interest rates are lower than expected.

Question 2

A positive statement is prescriptiveit prescribes what should be done.
a. True
b. False
Indicate whether the statement is true or false