Which One of the Following Is NOT a Cost of Inflation

question 133

Multiple Choice

Which one of the following is NOT a cost of inflation?

• A) wasted resources associated with price confusion
• B) higher tax burdens if tax brackets are not adjusted for inflation
• C) wealth redistribution from private citizens to the government
• D) an automatic decrease in real wages throughout the period of inflation.

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Definitions:

Intentional Component

An aspect of behavior and actions that is done with purpose or intention, often reflecting deliberate decision-making.

Affective Component

The emotional or feeling segment of an attitude, influencing how individuals feel about an object or situation.

Cognitive Component

Relates to the mental processes involved in understanding, reasoning, and decision-making.

Behavioral Component

An aspect of attitudes reflecting intentions or observable responses toward a person, group, or concept.