Which of the Following Is FALSE

question 14

Multiple Choice

Which of the following is FALSE?

• A)wage indexation is widespread in the U.S.
• B)the economy will adjust to supply shocks more easily if there is widespread wage indexation
• C)the holder of an indexed government bond will lose if an increase in inflation is unanticipated
• D)the government loses real tax revenue if there is an unanticipated increase in the inflation rate
• E)all of the above

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and statement of cash flows.

Operating Activities

The portion of a company's business activities that are related to its main operations, such as selling products or offering services.

Cash Flow Statement

A report detailing the impact of variations in balance sheet figures and income on cash and cash equivalents, segmented into operations, investments, and finance-related actions.

Dividend Payments

Dividend payments are the distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders.