The Problems That Inflation Creates for Society Are Caused Primarily

question 166

Multiple Choice

The problems that inflation creates for society are caused primarily by

• A)greed on the part of sellers
• B)uncertainty regarding the rate at which different prices are increasing or will increase
• C)too much incentive to lend money
• D)greed on the part of union leaders
• E)governments' actions to reduce the effects of inflation

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Definitions:

Normative Influence

A type of social influence that leads to conformity, motivated by a fear of social rejection.

Informational Influence

Refers to the effect of relying on others for information in ambiguous situations, leading to conformity.

Autokinetic Effect

A phenomenon where a stationary, small point of light in a dark room appears to move because of involuntary eye movements.

Adriatic Sea

A body of water located between the eastern coastline of Italy and the western coast of the Balkans, known for its tourism and biodiversity.