Business, 16.11.2020 17:50 dustin112000
Suppose that a country's inflation rate increases sharply. Which of the following statements are true?
a. Wealth in savings accounts is not subject to a change in the inflation tax because the real interest rate will increase with the rise in inflation.
b. The inflation tax on holders of money increases.
c. Holders of savings accounts are hurt by the increase in the inflation rate because they are taxed on their nominal interest income.
Answers: 1
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Suppose that a country's inflation rate increases sharply. Which of the following statements are tru...
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