Common fallacies Why are these statements wrong? (a) Inflation leads to high nominal interest rates.

Common fallacies Why are these statements wrong? (a) Inflation leads to high nominal interest rates. This reduces the present value of future income. (b) If the economy continues to become more capital intensive, eventually there will be no jobs left for workers to do. (c) Since the economy’s supply of land is fixed, it would be supplied even at a zero rental, which should therefore be the equilibrium rental in the long run.