Which of the Following Is Likely to Be an Effect

question 73

Multiple Choice

Which of the following is likely to be an effect of inflation?

• A)An increase in the willingness of lenders to lend money for longer periods
• B)A decrease in the willingness of borrowers to borrow money for longer periods
• C)A decrease in the purchasing power of lenders in the economy
• D)An increase in the willingness of people to buy bonds as a hedge against rising prices
• E)An increase in the willingness of people to buy physical assets as a hedge against rising prices

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Definitions:

Athletic Performance

The level of achievement and proficiency demonstrated by an athlete or sports participant in competitive settings.

Utility

In economics, the satisfaction or benefit derived from the consumption of goods or services.

Ultimate Consumer

The final purchaser and user of a product or service, as opposed to an intermediary or a business buyer.

Newspaper Reporter

A professional tasked with investigating, writing, and reporting news stories for newspapers or news websites.