Which of the Following Is Not an Effect of Inflation

question 20

Multiple Choice

Which of the following is not an effect of inflation?

• A)Redistribute wealth.
• B)Change economic behavior and bring about inefficient economic activity
• C)Result in action by the Federal Reserve to stop the inflationary spiral
• D)Increased uncertainty about the future
• E)All of the above are effects of inflation

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Definitions:

Scatterplot

A type of graph in statistics that displays values for typically two variables for a set of data.

Positive Correlation

A relationship between two variables in which both variables move in tandem, meaning that as one variable increases or decreases, the other does as well.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many physical and psychological attributes.

Distribution

The act of sharing something out among a number of recipients, or the way in which something is spread or dispersed.