means borrowers pay a higher nominal rate of interest, but it's the same real rate of interest, so borrowers aren't worse off and lenders aren't better off. Higher unexpected inflation, on the other hand, makes borrowers better off and lenders worse off.
b.
The statement that %unchanged, then no one is made better or worse off,\is false. Changes in relative prices can make some people better off and others worse off, even though the overall price level doesn't change. See problem 7 for an illustration of this.
The statement that \does not reduce the purchasing power of most workers,\is true. Most workers' incomes keep up with inflation reasonably well.
c.
第二部分：补充英文题目 Supplemental Questions
(Multiple choice question if marked with a-d, otherwise True/False questions.)
(For Chapter 29)
1. Which of the following is a store of value? a. currency b. U.S. government bonds c. fine art d. All of the above are correct.
2 . If the public decides to hold more currency and less money as deposits in banks, bank reserves a. increase and the money supply eventually increases. b. increase but the money supply does not change. c. decrease and the money supply eventually decreases. d. decrease but the money supply does not change.
(For Chapter 30)
3. Which of the following assets guarantees a fixed real return over a long period of time? a. gold b. stocks c. inflation-indexed bonds
d. no asset guarantees a fixed real return over a long period of time
4. A benefit of inflation is that it increases the variation of relative prices so that resources are more efficiently allocated. F