If inflation increases unexpectedly then A lenders receive a lower real

If inflation increases unexpectedly then a lenders

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136) If inflation increases unexpectedly, then A) lenders receive a lower real interest rate than they expected.B) neither borrowers nor lenders lose.C) lenders gain and borrowers gain.D) borrowers pay a higher real interest rate than they expected.Answer: A 136) Diff: 2 Page Ref: 665/291 Topic: Unanticipated Inflation Learning Outcome: Macro 13: Discuss the key measures, theories, and effects of inflation and deflation AACSB: Reflective Thinking 36
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137) Which of the following donotsuffer the costs of inflation? 137) Diff: 2 Page Ref: 664/290 Topic: Inflation and the Distribution of Income Learning Outcome: Macro 13: Discuss the key measures, theories, and effects of inflation and deflation AACSB: Reflective Thinking 138) Inflation that is ________ than what is expected benefits ________ and hurts ________. Diff: 2 Page Ref: 664/290 Topic: Inflation and the Distribution of Income Learning Outcome: Macro 13: Discuss the key measures, theories, and effects of inflation and deflation AACSB: Reflective Thinking 139) The costs to firms of changing prices are called 139) Diff: 1 Page Ref: 664/290 Topic: Anticipated Inflation Learning Outcome: Macro 13: Discuss the key measures, theories, and effects of inflation and deflation AACSB: Reflective Thinking 140) What are menu costs? A) the opportunity cost of dining in a restaurant instead of at homeB) the costs to a firm of changing pricesC) the full list of a firmʹs costs of productionD) the cost to a household of borrowing money when there is deflation140)Answer: B Diff: 1 Page Ref: 664/290 Topic: Anticipated Inflation Learning Outcome: Macro 13: Discuss the key measures, theories, and effects of inflation and deflation AACSB: Reflective Thinking
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