Which of the Following Statements Is FALSE

question 71

Multiple Choice

Which of the following statements is FALSE?

• A) When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy increases.
• B) Inflation that is higher than expected benefits debtors, and inflation that is lower than expected benefits creditors.
• C) Whether you gain or lose during a period of inflation depends on whether your income rises faster or slower than the prices of things you buy.
• D) There are no costs or losses associated with correctly anticipated inflation.

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Definitions:

Income Inequality

The unequal distribution of annual or lifetime income among individuals or households within a society.

Pre-Tax-And Transfer Income

The total income of individuals or households before taxes are deducted and before any government transfers, such as subsidies or welfare, are added.

Trend

A general direction in which something is developing or changing over time.

Percentage Terms

Percentage terms refer to expressions or calculations presented as a fraction of 100, indicating a portion or ratio in relation to a whole.