27) High and unexpected inflation has a greater cost A. for those who save than those...
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27) High and unexpected inflation has a greater cost A. for those who save than those who borrow. B. for those who hold a little money than for those who hold a lot of money. C. for those whose wages increase by as much as inflation, than those who are paid a fixed nominal wage. D. for savers in low income tax brackets than for savers in high income tax brackets. 28) If the economy unexpectedly went from inflation to deflation, A. both debtors and creditors would all have reduced real wealth. B. both debtors and creditors would all have increased real wealth. C. debtors would gain at the expense of creditors. D. creditors would gain at the expense of debtors. 29) Which of the following inflation costs matter even if actual inflation and expected inflation are the same? A. B. C. D. menu costs inflation tax shoeleather costs All of the above are correct. 30) When deciding how much to save, people care most about A. after-tax nominal interest rates. B. after-tax real interest rates. C. before-tax real interest rates. D. before-tax nominal interest rates. 27) High and unexpected inflation has a greater cost A. for those who save than those who borrow. B. for those who hold a little money than for those who hold a lot of money. C. for those whose wages increase by as much as inflation, than those who are paid a fixed nominal wage. D. for savers in low income tax brackets than for savers in high income tax brackets. 28) If the economy unexpectedly went from inflation to deflation, A. both debtors and creditors would all have reduced real wealth. B. both debtors and creditors would all have increased real wealth. C. debtors would gain at the expense of creditors. D. creditors would gain at the expense of debtors. 29) Which of the following inflation costs matter even if actual inflation and expected inflation are the same? A. B. C. D. menu costs inflation tax shoeleather costs All of the above are correct. 30) When deciding how much to save, people care most about A. after-tax nominal interest rates. B. after-tax real interest rates. C. before-tax real interest rates. D. before-tax nominal interest rates.
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27 A Such type of inflation will reduce the purchasing power of money that is save... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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