You Have Been Told You Must Receive a Very Painful

question 198

Multiple Choice

You have been told you must receive a very painful, and completely unavoidable shock. Although you can't avoid the shock, you do get to choose when (within the next 10 years) you will receive the shock. If you are like most participants in a study who imagined such an event, you would choose to receive your shock

• A) as far into the future as possible-10 years from now.
• B) several years into the future-5 years from now.
• C) fairly soon-several months from now.
• D) as soon as possible-today.

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Definitions:

Inflation

The upward movement in the overall price points of goods and services, cutting down on purchasing strength.

Average Price Level

A measure of the overall level of prices in an economy, often considered in terms of a price index.

Good and Service

Products that satisfy human wants directly (goods) or indirectly (services).

Hyperinflation

An extremely high and typically accelerating rate of inflation, often exceeding 50% per month, leading to a rapid erosion of the real value of the local currency.