An Unanticipated Increase in Inflation Will Lead to a Redistribution

question 47

Multiple Choice

An unanticipated increase in inflation will lead to a redistribution of wealth but

• A)people who hold liquid assets will not suffer any losses
• B)will not benefit borrowers in any way
• C)will not lead to a change in the real wage rate
• D)will not lead to a change in real interest rates
• E)none of the above

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Definitions:

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Personality

Personality consists of the unique patterns of thoughts, feelings, and behaviors that make up an individual’s character and distinguish one person from another.

Allport

Gordon Allport, a pioneering psychologist known for his work on personality traits and the concept of the individual.

Behaviorism

A branch of psychology that focuses on observable behaviors and the ways they're learned, ignoring internal thought processes.