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:

Transnational Corporation

A large company operating in several countries around the world, managing production or delivering services in more than one country.

Borderless Basis

Describes an approach or system that operates without the limitations or barriers imposed by geographic or political boundaries.

Conflict Minerals

Minerals sourced in areas of armed conflict, particularly the Democratic Republic of Congo and surrounding region, whose sale finances armed groups that perpetuate violence.

Armed Violence

The use of weapons to inflict harm or coercion, often associated with conflicts or criminal activity.