High and Unexpected Inflation Has a Greater Cost

question 33

Multiple Choice

High and unexpected inflation has a greater cost

• A)for those who borrow than those who save.
• B)for those who hold a little money than for those who hold a lot of money.
• C)for those whose wages increase by as much as inflation, than those who are paid a fixed nominal wage.
• D)for savers in high income tax brackets than for savers in low income tax brackets.

---

Definitions:

Three Years Old

Refers to the developmental milestone age in early childhood, where significant growth and learning in language, social skills, and motor coordination are observed.

Social Conventions

Established norms and practices that govern behavior within societies, often considered the unwritten rules of social interactions.

Moral Rules

Principles or standards of behavior that dictate what is considered right and wrong behavior in a society.

Magical Thinking

Magical thinking is the belief that one's thoughts, words, or actions can bring about something in the external world simply by personal will, bypassing the laws of physics and causation.