question archive Suppose that Americans expect inflation to be 5 percent in 2021, but in fact, prices fall by 3 percent
Suppose that Americans expect inflation to be 5 percent in 2021, but in fact, prices fall by 3 percent
Subject:EconomicsPrice: Bought3
Suppose that Americans expect inflation to be 5 percent in 2021, but in fact, prices fall by 3 percent. Describe how this unexpectedly low inflation would help or hurt the following:
a). The Federal US Government.
b). A homeowner with a fixed-rate mortgage.
c). A union worker in the second year of a labor contract.
d). A college that has invested some of its endowment in Government bonds
