High and Unexpected Inflation Has a Greater Cost

question 42

Multiple Choice

High and unexpected inflation has a greater cost

• A)for those who borrow than for those who save.
• B)for those who hold a little money than for those who hold a lot of money.
• C)for those who have fixed nominal wages than for those who have nominal wages that adjust with inflation.
• D)All of the above are correct.

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Definitions:

Chain Migration

A process where immigrants from a particular town follow others from that town to a new city or country, creating chains of people connected by a common origin.

Affiliation Needs

The human desire to feel a sense of involvement and belonging within a social group or community.

Refugees

Individuals who flee their country due to war, persecution, or natural disaster and seek protection in another country.

Affiliation Needs

The human desire to feel a sense of involvement and belonging within a social group.