Which of the Following Is Correct

question 189

Multiple Choice

Which of the following is correct?

• A)inflation will always increase the real income.
• B)inflation does not affect the distribution of income.
• C)the redistribution effects of inflation does not depend upon expectation.
• D)the redistribution effects of inflation depends upon whether or not it is expected.

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Definitions:

Average Revenue

The amount of revenue generated per unit of output sold, calculated by dividing total revenue by the quantity of units sold.

Total Revenue

The total amount of money generated by the sale of goods or services before any costs are subtracted.