Author Question: Which of the following is likely to be an effect of inflation? a. An increase in the willingness of ... (Read 46 times)

xclash · **on:** Jun 30, 2018

Which of the following is likely to be an effect of inflation?
a. An increase in the willingness of lenders to lend money for longer periods
b. A decrease in the willingness of borrowers to borrow money for longer periods
c. A decrease in the purchasing power of lenders in the economy
d. An increase in the willingness of people to buy bonds as a hedge against rising prices
e. An increase in the willingness of people to buy physical assets as a hedge against rising prices

Question 2

The government defines poverty as an income level less than three times the cost of a minimal diet.
a. True
b. False
Indicate whether the statement is true or false