EC201 chapter_7_Quiz Full

Answer false diff2 topic inflation skill fact 3 an

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Unformatted text preview: ociated with it. Answer: B Diff: 2 Topic: Inflation Skill: Conceptual AACSB: Reflective Thinking 51) Which of the following statements is FALSE? A) Whether you gain or lose during a period of inflation depends on whether your income rises faster or slower than the prices of the things you buy. B) Inflation that is higher than expected benefits debtors, and inflation that is lower than expected benefits creditors. C) There are no costs or losses associated with anticipated inflation. D) When inflation occurs regularly, the degree of risk associated with investments in the economy increases. unanticipated Answer: C Diff: 3 Topic: Inflation Skill: Analytic AACSB: Analytic Skills 52) When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy A) increases. B) decreases. C) remains stable. D) falls to zero. Answer: A Diff: 3 Topic: Inflation Skill: Conceptual AACSB: Reflective Thinking 53) Which of the following is TRUE? A) A recession will lead to reduced output in the future, but inflation has no effect on future output. B) Both recessions and inflations may reduce output in the future. C) A r...
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