Unanticipated Inflation Penalizes

question 141

Multiple Choice

Unanticipated inflation penalizes:

• A)those who are saving.
• B)those who are borrowing.
• C)governments.
• D)those who are in high-growth industries where wages are growing faster than prices.
• E)those who can't find jobs at any wage rate.

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Definitions:

Competitive Markets

Markets characterized by many buyers and sellers where no single participant has significant influence over market prices.

Median-Voter Model

A theoretical model in political science suggesting that the outcome of a majority-vote election is most likely to represent the preferences of the median voter.

Political Office Seeker

An individual who campaigns for or aspires to hold a position in government.

Extensive Government Spending

A fiscal policy where the government spends significant resources on public services, programs, and projects to stimulate economic growth or achieve social objectives.