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Redistribution of Wealth Is a Microeconomic Effect of Inflation

question 89

True/False

Redistribution of wealth is a microeconomic effect of inflation.
Assuming that buyers' nominal incomes remain constant,redistribution of wealth occurs because buyers of goods will be worse off and sellers will be better off when prices rise.


Definitions:

Genetic Drift

A mechanism of evolution that refers to random changes in the frequency of alleles within a population over time.

Inclusive Fitness

A concept in evolutionary biology predicting an organism's genetic success based on both its own offspring's survival and the support of relatives' offspring.

Adaptation

The process by which organisms adjust to new environments or changes in their current environment.

Sensory Neurons

Nerve cells responsible for converting external stimuli from the organism's environment into internal electrical impulses.

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