1. The lag that arises because policymakers may not immediately get up-to-date statistics on economic variables is known as the______lag.
A. decision B. data C. implementation D. recognition
2. The cost that firms incur to change prices is referred to as
A. inflation tax. B. menu costs. C. transaction costs D. pseudo costs.
3. In case of positive inflation rates, i. both borrowers and lenders of fund lose out. ii. both borrowers and lenders of fund gain. iii. lenders of funds gain, while borrowers lose out. iiii. borrowers of funds gain, while lenders lose out.
A. iiii. borrowers of funds gain, while lenders lose out.
B. iii. lenders of funds gain, while borrowers lose out.
C. In case of positive inflation rates, i. both borrowers and lenders of fund lose out.
D. ii. both borrowers and lenders of fund gain.