Assume That There Is a fiXed Rate of Interest on Contracts

question 88

Multiple Choice

Assume that there is a fixed rate of interest on contracts for borrowers and lenders. If unanticipated inflation occurs in the economy, then

• A) both lenders and borrowers benefit.
• B) both lenders and borrowers are hurt.
• C) borrowers are hurt, but lenders benefit.
• D) lenders are hurt, but borrowers benefit.

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Definitions:

Maintenance of Membership

Union security rules not requiring union membership but requiring that employees who join the union remain members for a certain period of time.

Right-to-Work Laws

Legislation that prohibits agreements between labor unions and employers that make union membership or payment of union dues a condition of employment.

Union Shops

Workplaces where employment is conditional upon the worker's membership in the union, typically after a set period has been completed.

National Labor Relations Act

A US law enacted in 1935 that protects the rights of employees and employers, encourages collective bargaining, and curtails certain private sector labor and management practices, which can harm the general welfare.