English Language · English
It can be inferred from the discussion of the 'Cantillon effect' that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Inflation universally benefits the working class by gradually eroding the real value of their long-term debt obligations.
- 2Primary dealer banks actively resist central bank asset-purchasing programs because such programs diminish the banks' purchasing power.
- 3Speculative arbitrage is heavily penalized and strictly regulated in an economic environment characterized by low interest rates.
- 4Those who already hold significant financial assets when a central bank injects liquidity are structurally advantaged over wage-earners.✓
Correct answer
Those who already hold significant financial assets when a central bank injects liquidity are structurally advantaged over wage-earners.
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