High and Unexpected Inflation Has a Greater Cost

question 22

Multiple Choice

High and unexpected inflation has a greater cost

• A)for those who save than for those who borrow.
• B)for those who hold a little money than for those who hold a lot of money.
• C)for those whose wages increase by as much as inflation than those who are paid a fixed nominal wage.
• D)for savers in low income tax brackets than for savers in high income tax brackets.

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Definitions:

Reaction Formation

A defense mechanism where an individual expresses feelings or behaviors that are opposite to their actual feelings, often to hide their true emotions.

Doubts About His Religion

Experiencing uncertainty or questioning the beliefs and practices of one's religion, which can be a part of spiritual growth or lead to changes in religious identification.

Defense Mechanism

Tactics employed by the subconscious mind to adjust, deny, or warp reality as a means to guard against feelings of unease and unwanted desires.

Reaction Formation

is a psychological defense mechanism where a person behaves in the opposite way to their actual feelings in order to hide their true emotions.