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In the equation M ´ V = P ´ Y, the variable M stands for the
A.median rate of inflation.
B.movement of goods.
C.quantity of money.
D.velocity of money.
E.movement of prices.
In which direction does a surge of inflation redistribute wealth?
A.from private corporations to the government
B.from workers to managers
C.from consumers to producers
D.from the rich to the poor
E.from lenders to borrowers
Inflation sometimes causes people to pay ________ capital gains tax than they ought to, ________.
A.more; because the inflation adjustments in tax laws overcompensate for inflation
B.less; because tax laws do not typically account for inflation
C.less; because inflation creates the opportunity for a tax write-off
D.more; if much of their calculated profits from selling assets was due to inflation
E.more; if they neglect to claim the inflation adjustment that tax laws allow
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