Why Is There a Resource Cost Associated with Inflation

question 332

Multiple Choice

Why is there a resource cost associated with inflation?

• A) because unemployment increases when there is inflation
• B) because most workers end up working fewer hours during periods of inflation
• C) because consumers, workers, and firms devote resources to protecting themselves from the financial costs of inflation
• D) because the existence of inflation discourages people from placing their savings in interest-bearing accounts, where it is needed to fund capital investment

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Definitions:

Title Search

The examination of public records to determine and confirm a property's legal ownership and find out what claims or liens are on the property.

Fair Housing Act

A federal law in the United States aimed at eliminating discrimination in the housing industry based on race, color, religion, sex, national origin, disability, or family status.

Discrimination

Unfair treatment or prejudicial distinction of individuals based on race, gender, age, or other status instead of individual merit.

Fair Housing Act

A United States law passed in 1968 aimed at eliminating discrimination in the sale, rental, and financing of housing based on race, religion, national origin, or sex.