Q.1.18 The implementation lag is for monetary policy and , for fiscal policy. (1) Extremely short; long; (2) Long; extremely short; (3) Long; long; (4) Long; short. Q.1.19 Creditors and debtors tend to lose during an inflationary period since: (1) The nominal interest rate on their credit tends to fall; (2) The real value of their credit tends to decrease; (3) Debtors pay more in real terms; (4) The real interest rate on their credit remains constant.
Q.1.18 The implementation lag is for monetary policy and , for fiscal policy. (1) Extremely short; long; (2) Long; extremely short; (3) Long; long; (4) Long; short. Q.1.19 Creditors and debtors tend to lose during an inflationary period since: (1) The nominal interest rate on their credit tends to fall; (2) The real value of their credit tends to decrease; (3) Debtors pay more in real terms; (4) The real interest rate on their credit remains constant.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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