A Country Is Likely to Have a Lower Sacrifice Ratio

question 165

Multiple Choice

A country is likely to have a lower sacrifice ratio if

• A) contracts are shorter,and people believe the central bank will reduce inflation.
• B) contracts are shorter,and people believe the central bank will not reduce inflation
• C) contracts are longer,and people believe the central bank will reduce inflation
• D) contracts are longer,and people believe the central bank will reduce inflation .

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Definitions:

Checking Account

A bank account that allows easy access to funds, typically through checks or electronic transactions, and is used for day-to-day expenses.

Payee

A person or entity who is to receive money.

Drawer

In banking and finance, the person or entity that writes a check or draft instructing a drawee to pay a specified sum to a third party.

Negotiable

Capable of being transferred from one person to another through endorsement or delivery, often used in the context of negotiable instruments like checks.