A Sudden Increase in Inflation,ceteris Paribus

question 101

Multiple Choice

A sudden increase in inflation,ceteris paribus,

• A)Raises the real income of lenders relative to borrowers.
• B)Raises the CPI and reduces real income.
• C)Reduces the nominal income of those who have constant real incomes.
• D)Makes everyone worse off.

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Definitions:

Behavior Modification

A psychological technique used to change or improve an individual's behaviors through reinforcement, punishment, and other strategies.

Negative Reinforcement

The strengthening of a behavior because a negative condition is stopped or avoided as a consequence of the behavior.

Positive Punishment

A method in behavioral psychology where an undesirable stimulus is introduced following a behavior to decrease the likelihood of that behavior occurring again.

Aversive Stimulus

A stimulus that is unpleasant and causes a decrease in the strength or frequency of the behavior it follows.