An Unstable Inflation Rate

question 50

Multiple Choice

An unstable inflation rate

• A) always redistributes real income from lenders to borrowers.
• B) always redistributes real income from borrowers to lenders.
• C) adds to the risk of borrowing and lending and interferes with long-run financial planning.
• D) makes goods and services too expensive.
• E) always redistributes real income from taxpayers to the government.

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Definitions:

Behaviourism

A field of psychology that focuses on observable behaviors and disregards internal processes such as thoughts and emotions.

Psychological Perspective

An approach in psychology focusing on the mental processes and behaviors of individuals, encompassing various theories and methodologies.

Behaviourism

An approach in psychology focusing on observable behaviors, and discounting mental activities.

Psychoanalytic Theory

A theory developed by Freud that emphasizes unconscious psychological processes and contends that childhood experiences significantly influence adult personality.