Which of the Following Are Consequences of Inflation

question 126

Multiple Choice

Which of the following are consequences of inflation?

• A) It increase the burdens on people with fixed incomes when inflation is not anticipated.
• B) It hurts savers but helps those who have borrowed at a fixed rate.
• C) Inflation imposes costs on people who devote resources to protecting themselves from expected inflation.
• D) all of the above

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Definitions:

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group compared to when they work alone.

Individual Productivity

The rate or efficiency at which an individual can produce outcomes or complete tasks, often in a work or academic setting.

Ordinary People

Refers to average individuals in society who are not distinguished by wealth, position, or special achievements.