Which of the Following Is Not an Effect of Inflation

question 29

Multiple Choice

Which of the following is not an effect of inflation that is troublesome to consumers?

• A) Household incomes may be rising slower than the overall prices.
• B) The purchasing power of people's savings would decrease.
• C) Workers' wages may be rising faster than the overall price level.
• D) Their standard of living will fall if their household has a fixed nominal income.

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Definitions:

1st Quartile

The value below which 25% of the data falls, often used in statistics to measure the spread of a data set.

Median

The middle value of a dataset when it is ordered in ascending or descending order.

3rd Quartile

Represents the value below which 75% of the data in a data set is contained, marking the upper quartile of a data set.

Benzophenone

An organic compound used as a photoinitiator and in the manufacture of perfumes, soaps, and other products, known for its benzene ring bonded to a ketone.