If Inflation Is Correctly Anticipated, Those Who Buy Government Bonds

question 60

Multiple Choice

If inflation is correctly anticipated, those who buy government bonds will:

• A)suffer losses regardless of inflation because interest paid on government bonds is set by Congress.
• B)not suffer losses because inflation does not affect the purchasing power.
• C)suffer losses because they will be compensated by lower interest payments.
• D)not suffer losses because they will be compensated by higher interest payments.

---

Definitions:

Attribute Success

The tendency to explain one's achievements based on personal qualities and effort.

Attribution Process

The cognitive process individuals use to explain the causes of behavior and events, including the interpretation of one's own behavior and the behavior of others.

Common Errors

Frequent mistakes or misconceptions that occur in a specific context or activity.

Registration Document

A document that officially records the details of an entity, vehicle, or property, facilitating its official recognition.