Which of the Following Is Correct

question 189

Multiple Choice

Which of the following is correct?

• A)inflation will always increase the real income.
• B)inflation does not affect the distribution of income.
• C)the redistribution effects of inflation does not depend upon expectation.
• D)the redistribution effects of inflation depends upon whether or not it is expected.

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Definitions:

Business Events

Occurrences that affect the financial position of a company and can be measured reliably in financial terms.

Recorded

The process of recording business financial transactions into the accounting books.

Accrued Revenues

Revenues for services performed but not yet received in cash or recorded.

Received

Typically refers to the acknowledgement of having gotten something, such as goods or payments, within a business context.