Which Statement About Inflation Is Correct

question 145

Multiple Choice

Which statement about inflation is correct?

• A)Families are always hurt by inflation.
• B)Inflation "subsidizes" those who receive relatively fixed money income.
• C)The redistributive effects of inflation are arbitrary with respect to people and groups in society.
• D)Inflation will decrease the real value of property assets and increase the real value of fixed-value assets.

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Definitions:

World Price

The international market price of a good or service, determined by global supply and demand, that influences local market prices and trade policies.

Export

The process of selling goods or services produced in one country to other countries.

Absolute Advantage

A situation where a country or individual can produce more of a good or service with the same amount of resources than others.

Competitive

A market situation where multiple firms or entities vie for the same customers or market share.