Inflation Is Troublesome to Consumers Because of the Following Effects

question 47

Multiple Choice

Inflation is troublesome to consumers because of the following effects, except:

• A) Household incomes may be rising slower than the overall prices
• B) The purchasing power of people's savings would decrease
• C) Workers' wages may be rising faster than the overall price level
• D) The standard of living would fall if a household has a fixed nominal income

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Definitions:

Glomeruli

Small, spherical structures in the kidneys that are responsible for filtering blood and starting the process of urine formation.

Pyriform Cortex

A region of the brain involved in the processing of olfactory (smell) information.

Chemosignals

Chemical signals that convey information between organisms; they play key roles in many biological processes and behaviors.

Biochemicals

Molecules that constitute the chemical substances and processes occurring within living organisms.