(02.05 MC) Which of the following is true for an unexpected inflation rate? A: A loan at an interest rate that is index
Posted: Sun Jun 05, 2022 3:56 pm
(02.05 MC)
Which of the following is true for an unexpected inflation
rate?
A: A loan at an interest rate that is indexed to the
inflation rate will be better off in the case of unexpected
inflation.
B: An investor who has just invested in a government bond that
pays him a fixed amount will be better off.
C: Emily borrows the money from a bank at a fixed interest rate
and will be better off because of unexpected inflation.
D: John is receiving $2,000 per month from his internship and is
better off regardless of the inflation rate.
E: Workers working in a firm are better off when they receive a
3% increase in wages if inflation unexpectedly rises by 5%.
Which of the following is true for an unexpected inflation
rate?
A: A loan at an interest rate that is indexed to the
inflation rate will be better off in the case of unexpected
inflation.
B: An investor who has just invested in a government bond that
pays him a fixed amount will be better off.
C: Emily borrows the money from a bank at a fixed interest rate
and will be better off because of unexpected inflation.
D: John is receiving $2,000 per month from his internship and is
better off regardless of the inflation rate.
E: Workers working in a firm are better off when they receive a
3% increase in wages if inflation unexpectedly rises by 5%.