Unanticipated Inflation Is Usually Viewed as Undesirable Because It

question 18

Multiple Choice

Unanticipated inflation is usually viewed as undesirable because it

• A)reduces everyone's nominal wages
• B)redistributes income and wealth
• C)is accompanied by reductions in real GDP
• D)usually results in the public sector growing less rapidly than the private sector
• E)lets lenders gain at the expense of borrowers

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Definitions:

Cashed

Processed or exchanged for its value in money, typically referring to a check being turned into cash.

Restrictive Endorsement

A limitation placed on a check specifying the conditions under which it can be endorsed.

Special Endorsement

A banking term referring to a notation on a check or other negotiable instrument that specifies the conditions under which it can be redeemed or transferred.

Qualified Endorsement

A legal notation on a negotiable instrument, such as a check, restricting the conditions under which it can be further negotiated.