The Application Shows That High Inflation Results in Fewer Years

question 45

Multiple Choice

The application shows that high inflation results in fewer years to pay back student loans because:

• A)when inflation is high,the nominal value of the loan increases.
• B)when inflation is high,the nominal value of wages decreases.
• C)when inflation is high,the nominal value of the loan decreases.
• D)when inflation is high,the nominal value of the wages decrease.

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Definitions:

Disequilibrium

In the context of developmental psychology, this term refers to a state of cognitive imbalance that prompts learning and adjustment, as theorized by Jean Piaget.

Cognitive Growth

The expansion of mental abilities and processing capacities, often through learning, experience, and maturity.

Synaptic Growth

The development and strengthening of synapses, which are the connections between neurons in the brain.

Assimilation

The process by which individuals or groups adopt the culture and norms of another group, losing their original identity partially or completely.