首页
登录
职称英语
Before discussing the effect of deflation and inflation on the distribution
Before discussing the effect of deflation and inflation on the distribution
游客
2023-09-12
31
管理
问题
Before discussing the effect of deflation and inflation on the distribution of income, it will be useful to define these terms. By inflation we mean a time of generally rising prices of goods and factors of production, such as wages and rents. By deflation we mean a time when most prices and costs are falling. Neither in inflation nor in deflation do prices all move in the same direction or in exactly the same proportion. As a result of changes in relative prices and in total spending, the two processes of inflation and deflation cause definite and characteristic changes in the distribution of income among economic classes.
Unforeseen inflation tends to favor debtors and profit receivers at the expense of creditors and fixed-income receivers. Suppose, for example, you lend $1,000 today and me paid back one year from now. If in the meantime prices have doubled, then your debtor will be paying back only one half as much real purchasing power as you gave him Or consider an American who was earning a fixed rate of 6% yearly on a mortgage prior to World War Ⅱ. After 1939 he found that, as a result of inflation caused by World War Ⅱ, he was not even holding his own as far as real purchasing power of the dollar was concerned. On the other band, one who invests in real estate, in common stocks, or in commodities makes a great profit dining times of unforeseen inflation, when the volume of business sales increases greatly, as do prices, between the time that businesspersons buy and sell their merchandise, fixed or overhead costs remain the same; other costs rise, but not so rapidly as prices. For all these reasons, profits increase--often faster than the cost of living.
In times of deflation, the situation is reversed Creditors and fixed-income receivers tend to gain at the expense of debtors and profit receivers. If prices fall between the time that a creditor lends money and is repaid, then he gets back more purchasing power than he lent. Between the time that a merchant buys and sells goods, he will have to take a loss. The school teacher who keeps his jobs and whose pay is not cut, however, finds that his real income has increased. Likewise, a hoarder who earns no interest on the money she keeps hidden finds the real value of her wealth increasing everyday as prices fall. If prices fall at the rate of 10% a year, she is being rewarded for her antisocial act of hoarding at a 10% rate of interest in real terms, while the businessperson who gives someone a job may find that he can’t even get back his outlay, much less earn a profit. [br] Which of the following statements is true according to the passage?
选项
A、Deflation means that prices all are falling.
B、Fixed-income receivers can benefit much from inflation.
C、Inflation occurs much more titan deflation.
D、Even in inflation, prices of some goods may be falling
答案
D
解析
本题是判断题。even in inflation, prices of some goods may be falling与第—段中—句Neither in inflation nor in deflation do prices all move in the same direction or in exactly the same proportion相符,因此D项是正确答案。A项句意:紧缩通货意所有的价格都在下降。这一说法与第—段第三句“By deflation we mean a time when most prices and costs are falling.”的deflation定义不一致。因此A项不正确。B项“有固定收入的人能从通货膨胀中获益”与第二段Unforeseen inflation tends to favor debtors and profit receivers at the expense of creditors and fixed-income receivers不符。C项的论述文中没有提及。
转载请注明原文地址:https://tihaiku.com/zcyy/3007167.html
相关试题推荐
WorldPopulationGrowthandDistributionTheUnitedN
WorldPopulationGrowthandDistributionTheUnitedN
WorldPopulationGrowthandDistributionTheUnitedN
WorldPopulationGrowthandDistributionTheUnitedN
WorldPopulationGrowthandDistributionTheUnitedN
Longbeforethefirst【B1】______arrivedinAmerican,astrangelookinganim
Longbeforethefirst【B1】______arrivedinAmerican,astrangelookinganim
Longbeforethefirst【B1】______arrivedinAmerican,astrangelookinganim
Longbeforethefirst【B1】______arrivedinAmerican,astrangelookinganim
Longbeforethefirst【B1】______arrivedinAmerican,astrangelookinganim
随机试题
[originaltext]W:Mr.Ishiguro,haveyoueverfoundoneofyourbooksatasecon
农业社会化服务的模式有哪些。
交流电路在任一瞬间,电压瞬时值u与电流瞬时值i的乘积,称为瞬时功率()。
患者,男,50岁。咳嗽2个月,痰中带血,不发热,抗感染治疗效果不明显。3次X线检
追求时尚与款式,往往不问价格、质量的消费者属于( )消费者。A.理智型 B.
作为班长,晓月成功组织了很多班级活动。可是,晓月的妈妈担心班级事务影响晓月的学习
在行政法的渊源中,( )是指两个或者两个以上的国家签订的有关政治、经济、文化、
人民防空工程中的单建掘开式工程是单独建设的采用()施工,且大部分结构处于原地表
教师将一个上课迟到的学生拒之(教室)门外的做法侵犯了学生的( )A.受教育权
根据《招标投标法实施条例》,关于评标的说法中,正确的是()。A.行政监督部
最新回复
(
0
)