Which Statement About Inflation Is Correct

question 145

Multiple Choice

Which statement about inflation is correct?

• A)Families are always hurt by inflation.
• B)Inflation "subsidizes" those who receive relatively fixed money income.
• C)The redistributive effects of inflation are arbitrary with respect to people and groups in society.
• D)Inflation will decrease the real value of property assets and increase the real value of fixed-value assets.

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Definitions:

Expectancies

Beliefs or assumptions about the likelihood of future events or outcomes.

Conditions

Specific factors or circumstances that affect situations, actions, or phenomena, determining their outcomes or the manner in which they occur.

Dilemmas

Situations that require a choice between options that are or seem equally unfavorable or mutually exclusive.

Crises

Periods of significant change or turmoil in an individual's or group's life, often prompting a need for major decisions or adjustments.