The Problems That Inflation Creates for Society Are Caused Primarily

question 166

Multiple Choice

The problems that inflation creates for society are caused primarily by

• A)greed on the part of sellers
• B)uncertainty regarding the rate at which different prices are increasing or will increase
• C)too much incentive to lend money
• D)greed on the part of union leaders
• E)governments' actions to reduce the effects of inflation

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Definitions:

Foreseeable Future

A time period in which an event or action is predicted or expected to occur.

Economic Benefits

The advantages or gains received by an individual, company, or society from financial activities or investments.

Past Transactions

Previously completed financial activities or operations that a company has engaged in.

Historical Cost Principle

An accounting principle that states all assets should be recorded at their original purchase cost rather than their current market value.