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Mac6: Inflation, deflation, winners/losers from inflation

Last updated about 6 years ago

5 questions

1

1

1

1

1

Question 1

1.

How does inflation affect the purchasing power of money?

Inflation only affects purchasing power when it's really high

Inflation decreases purchasing power

inflation doesn't affect purchasing power

Inflation increases purchasing power

Question 2

2.

When the general or average level of prices falls over time it's called:

Deflation

Inflation

Cost-push inflation

Demand-pull inflation

Question 3

3.

Which of the following groups is hurt by unanticipated inflation?

People with flexible incomes

People with a COLA

People living on a fixed income

Borrowers

Question 4

4.

Which of the following groups benefits from unanticipated inflation?

Borrowers

Savers

People living on a fixed income

Lenders

Question 5

5.

An adjustment that automatically inceases incomes or benefits for individuals when inflation occurs is called:

ASAP

AARP

NRA

COLA