Inflation Hedges ________

question 9

Multiple Choice

Inflation hedges ________.

• A) have real returns that are less affected by inflation
• B) increase the risk and return from holding currency
• C) exhibit zero return
• D) are denominated in nominal terms

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Definitions:

Behavioral Economics

A field of economics that studies the effects of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions and the consequences for market prices, returns, and the allocation of resources.

Economic Behavior

The actions and decisions individuals, households, firms, and governments make regarding the allocation of resources and goods.

Psychology

The study of the mind and behavior, exploring various aspects of conscious and unconscious experience as well as thought and emotion.

Behavioral Economics

A field of study that analyzes how psychological, social, cognitive, and emotional factors affect the economic decisions of individuals and institutions and the consequences for market prices, returns, and the allocation of resources.