Which of the Following People Is Least Likely to Be

question 35

Multiple Choice

Which of the following people is least likely to be hurt by inflation?

• A)a salesperson who works on commission
• B)a retired couple living on a pension
• C)an individual who works under a labor contract calling for a fixed wage for the next three years
• D)an individual who contracts to lend money for a fixed rate of interest for the next three years
• E)an individual working at the minimum wage (which seldom changes)

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Definitions:

Real Flows

In economic terms, the exchange of goods, services, and inputs between households and firms, as opposed to financial flows which involve money.

Money Flows

The movement of money into and out of an entity or market, often analyzed to predict economic conditions or market trends.

Invisible Hand

A term introduced by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests benefit society as a whole.

Competition

The rivalry among businesses to attract customers, which can lead to improved quality, lower prices, and innovation.