Inflation Is Undesirable Because It

question 180

Multiple Choice

Inflation is undesirable because it

• A)arbitrarily redistributes real income and wealth.
• B)invariably leads to hyperinflation.
• C)usually is accompanied by declining real GDP.
• D)reduces everyone's standard of living.

---

Definitions:

FOB Shipping Point

A term indicating that the buyer of goods takes ownership and is responsible for the freight charges at the time the goods leave the seller's shipping point.

Estimated Method

The estimated method is an accounting technique used to approximate the value of certain items or financial outcomes when exact figures are unavailable or impractical to determine.

Natural Disaster

A major adverse event resulting from natural processes of the Earth, such as floods, hurricanes, earthquakes, or volcanic eruptions, that can cause significant damage or loss of life.

Inventory Records

Documents that track the quantities, conditions, and locations of products a company has in stock, including raw materials, work-in-process, and finished goods.