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

---

Definitions:

Underground Train

A railway system in which the trains run below the ground surface, usually in tunnels, especially in urban areas.

Asphyxiated

The state of being deprived of oxygen, leading to unconsciousness or death; suffocation.

Metaphorical

Relating to, using, or denoting a thing that symbolizes or stands for something else, especially in literature and art.

Literal

Pertaining to the exact meaning of words or text without interpretation or exaggeration.