Which of the Following Is True About Inflation

question 118

Multiple Choice

Which of the following is true about inflation?

• A) Inflation promotes social harmony by uniting people against the government.
• B) Inflation is more damaging if it is anticipated.
• C) Accurate anticipation of inflation is possible for everyone who is well informed about economic events.
• D) Those who lend money at a rate below the rate of inflation suffer economic losses.
• E) If people accurately anticipate inflation, their actions will prevent it.

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Definitions:

Statutory Assignment

The transfer of a legal right from one person to another pursuant to specific statutes.

Notice in Writing

A formal method of communication that is documented in a written format and often required by law or contracts to announce changes or intentions.

Privity of Contract

A doctrine in contract law stipulating that only parties to a contract can sue or be sued on it.

Notice of Assignment

A formal notification to the concerned parties that the rights or interests of an agreement have been transferred from one party to another.