Which of the Following Is Not an Economic Cost of Higher

question 73

Multiple Choice

Which of the following is not an economic cost of higher than anticipated inflation?

• A)Purchasing power of people on fixed incomes will fall.
• B)A person who has borrowed money at a fixed interest rate will be disadvantaged.
• C)Businesses incur costs through having to change prices.
• D)Banks who have loaned out money at a fixed interest rate will be disadvantaged.

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Definitions:

Functionalism

A theoretical framework in sociology and anthropology that views society as a complex system whose parts work together to promote solidarity and stability.

Dynamic System

A system characterized by constant change, activity, or progress, often used in reference to complex systems with various interdependent factors and variables.

Interrelated Parts

Components that are connected or related in such a way that changes in one part affect the others.

Proletariat

The class of wage-earners in a capitalist society, who, lacking substantial control over the means of production, sell their labor to live.