High and Unexpected Inflation Has a Greater Cost

question 28

Multiple Choice

High and unexpected inflation has a greater cost

• A)for those who borrow than for those who save.
• B)for those who hold a little money than for those who hold a lot of money.
• C)for those whose wages increase by as much as inflation than for those who are paid a fixed nominal wage.
• D)for savers in high income tax brackets than for savers in low income tax brackets.

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Definitions:

Epidermis

The outer layer of the skin; literally over the true skin.

Abrasion

An injury caused by rubbing or scraping off the skin.

Foreign Material

Substances or objects present within an organism or system that are not naturally occurring or part of the system itself.

Forceps

An instrument used to grasp tissue and to clamp blood vessels.