iVAT Chapter 18

A  students

B  creditors

C  debtors

D  capitalists

E  workers

A  no one

B  workers

C  borrowers

D  creditors

E  debtors

A  workers

B  debtors

C  creditors

D  borrowers

E  no one

A  8

B  3

C  5

D  0

E  2

A  0%

B  15%

C  25%

D  35%

E  5%

A  Those who can raise the prices of the goods they sell.

B  Those who have wage increases indexed with inflation.

C  No one

D  Those who can’t raise their wages or prices.

A  those who have fixed wage increases

B  retirees

C  no one

D  those who have debts with varying interest rates

E  those who can raise their prices

A  Asset price inflation can create bubbles and lure human talent and resources into the sector that is experiencing asset price inflation.

B  It can cause GDP to grow more rapidly than the sector that is experiencing asset price inflation.

C  Asset price inflation can inflate human ingenuity.

D  It can create perverse incentives where companies are discouraged from making investments in the sector that is experiencing asset price inflation.

A  .90; There was asset price inflation because the net worth to GDP ratio increased over this time period from 1 to .90.

B  .90; There was asset price deflation because the net worth to GDP ratio decreased over this time period from 1 to .90.

C  1.0; There was asset price inflation because the net worth to GDP ratio increased over this time period from 1 to 1.0.

D  1.13; There was asset price inflation because the net worth to GDP ratio increased over this time period from 1 to 1.13.

A  nominal GDP growth rate

B  corporate bond yields

C  amount of goods inflation

D  ratio of net worth to inflation

E  ratio of net worth to GDP

A  the productive capacity of assets declines.

B  the price of assets grows faster than the productive capacity of those assets.

C  the price of assets decline.

D  the productive capacity of assets climb.

E  goods inflation slows.