All of the Following Are Associated with Rising Inflation EXCEPT

question 21

Multiple Choice

All of the following are associated with rising inflation EXCEPT

• A) income redistribution.
• B) a steady decrease in interest rates.
• C) firms hesitating to enter into long-term contracts with suppliers.
• D) families having trouble deciding how much to save for retirement.

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Definitions:

Inflation

The level of acceleration in the universal pricing for goods and services, diminishing the power of the dollar.

Inflation Expectations

The rate at which individuals expect the general price level of goods and services to change over a period of time.

Short-run Phillips Curve

A representation in economics that shows an inverse relationship between the rate of unemployment and the rate of inflation in the short-term.

Unemployment

The condition wherein people who are able and willing to work and are actively looking for work cannot secure a job.