Retired individuals: (Multiple Choice)

Retired individuals:
a. Are always harmed by inflation.
b. Are almost always helped by inflation.
c. Could be helped (or, at least, not hurt) by inflation if their assets rise in value.
d. Are helped by inflation when it is unexpected.
e. Are harmed by inflation when it is expected.

Question 2 - Which of the following is an exogenous variable in the Three-Sector-Model?
a. Oil prices
b. Real GDP
c. Quantity of real credit per time period
d. Quantity of currency per time period
e. All of the above are exogenous variables.

Question 3 - Retired individuals:
a. Are always harmed by inflation.
b. Are almost always helped by inflation.
c. Are helped by inflation when it is unexpected.
d. Are harmed by inflation when it is expected.
e. Could be helped by inflation if their spending patterns are not like the average consumer.

Question 4 - Which of the following is an exogenous variable in the Three-Sector-Model?
a. GDP price index
b. Oil prices
c. Quantity of currency per time period
d. Real GDP
e. All of the above are exogenous variables.

Question 5 - If expected inflation were 5, and the real interest rate was 3, what sector would be worse off if the actual inflation rate turned out to be 2.
a. Businesses.
b. Laborers.
c. Both.
d. None.

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Retired individuals: (Multiple Choice)

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