Which of the Following Is Not an Example of Inflation

question 7

Multiple Choice

Which of the following is not an example of inflation causing a redistribution of income because the inflation was unanticipated?

• A)A firm signs a 3-year contract with a union based on a 2 percent anticipated rate of inflation per year,and the actual rate of inflation ends up being 7 percent per year.
• B)A worker receives a raise in salary that is less than the rate of inflation,because management under-predicted inflation.
• C)Firms have to hire an extra worker to change prices in its store because of inflation.
• D)A bank collects a lower amount of interest from a loan because inflation was under-predicted.

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Definitions:

Voltage Fluctuations

Variations in the electrical potential difference that can affect the performance of electronic circuits and power systems.

Cell Membrane

The cell membrane is a biological membrane that separates the interior of all cells from the outside environment, controlling the movement of substances in and out of cells.

Axon

The long, slender projection of a neuron that conducts electrical impulses away from the neuron's cell body to other neurons or muscles.

Action Potential

A sudden, temporary reversal of the electrical charge across a neuron's plasma membrane, allowing neurons to transmit signals over long distances within the body.