What Does Inflation Have to Do with Wealth Redistribution

question 128

Multiple Choice

What does inflation have to do with wealth redistribution?

• A) Borrowing money has less cost, since you are paying the loan back with less purchasing power; wealth flows from lender to borrower.
• B) Loaning money has less cost, since you are receiving loan payments that have less value; wealth flows from borrower to lender.
• C) Since inflation is low, there is no impact of inflation on wealth redistribution.
• D) Lenders gain at the expense of borrowers.
• E) Pawn shops gain more at the expense of poor people.

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Definitions:

Sociological Ideas

Concepts and theories developed to understand social systems, behaviors, and interactions among individuals within a society.

Social Setting

The specific environment or context in which social interactions occur, including its cultural, historical, and physical aspects.

Altruistic Suicide

Durkheim’s term for suicide that occurs in high-solidarity settings, where norms tightly govern behavior. Altruism means devotion to the interests of others. Altruistic suicide is suicide in the group interest.

Cultural Constraints

Limitations and restrictions on behaviors, practices, and norms imposed by the values, beliefs, and rules of a society.