Which of the Following Is a Disadvantage of In?ation

question 49

Multiple Choice

Which of the following is a disadvantage of in?ation?

• A) It reduces the nominal rate of interest.
• B) It increases the real value of the pro?ts made when an asset is sold.
• C) It reduces the purchasing power of money.
• D) It increases the real value of household savings.

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Definitions:

Nature-Nurture Issue

The ongoing debate in psychology and biology on the relative contributions of genetic predispositions (nature) and environmental factors (nurture) to human development and behavior.

Developmental Scientists

Researchers who focus on studying how humans grow and change over the course of their lives.

Active

Characterized by engagement in physical movement or activity, often associated with health and vitality.

Passive

Describing behavior that is submissive or shows a lack of active response or resistance.