If the Inflation Rate in an Economy Is Higher Than

question 30

Multiple Choice

If the inflation rate in an economy is higher than expected,which of the following groups in the society would be most likely to gain?

• A)Borrowers
• B)Lenders
• C)Persons holding large amounts of money
• D)Persons on fixed incomes
• E)Workers under contract without a cost of living adjustment

---

Definitions:

Hypothesis

A proposed explanation for a phenomenon, which can be tested through experimentation and research.

Positive Correlation

A connection between two variables where both variables shift in tandem.

Independent Variables

In experimental design, the variables that are manipulated by the researcher to observe their effect on dependent variables.

Opposite Direction

A term indicating a movement, action, or trend that goes in the reverse direction of a previously established pattern or expectation.