Why Is There a Resource Cost Associated with Inflation

question 332

Multiple Choice

Why is there a resource cost associated with inflation?

• A) because unemployment increases when there is inflation
• B) because most workers end up working fewer hours during periods of inflation
• C) because consumers, workers, and firms devote resources to protecting themselves from the financial costs of inflation
• D) because the existence of inflation discourages people from placing their savings in interest-bearing accounts, where it is needed to fund capital investment

---

Definitions:

People Button

A feature in some software and online platforms that provides access to contact information or social network connections.

Navigation Bar

A user interface element within a webpage or application that provides links or buttons for users to navigate through different sections or pages.

Home Tab

In software applications, particularly in office suites, the primary tab that contains the most frequently used options and tools such as font formatting and paragraph settings.

Search Box

A text field in a user interface where users can type in keywords to find specific information or content.