If the Inflation Rate in an Economy Is Higher Than

question 167

Multiple Choice

If the inflation rate in an economy is higher than expected, which of the following groups in the society would be most likely to gain?

• A) borrowers
• B) lenders
• C) persons holding large amounts of money
• D) persons on fixed incomes
• E) workers under contract without a cost-of-living adjustment

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Definitions:

Modern Environment

The contemporary physical, social, economic, and political surroundings in which individuals or societies exist.

Laws Of Probability

The mathematical rules that describe the likelihood of certain events occurring, which govern random events and can predict the outcomes of complex systems.

Gambler's Fallacy

The false notion that if an event takes place more often than usual over a certain span, its occurrence will diminish in the future, or the contrary.

Availability Heuristic

A quick judgment method drawn from examples that surface quickly in one's thoughts when deliberating over a specific area, theory, approach, or verdict.