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Mac6: Inflation, deflation, winners/losers from inflation
By Jeffrey See
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Last updated over 6 years ago
5 questions
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Question 1
1.
Question 2
2.
Question 3
3.
Question 4
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Question 5
5.
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
When the general or average level of prices
falls
over time it's called:
Deflation
Inflation
Cost-push inflation
Demand-pull inflation
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
Which of the following groups
benefits
from unanticipated inflation?
Borrowers
Savers
People living on a fixed income
Lenders
An adjustment that automatically inceases incomes or benefits for individuals when inflation occurs is called:
ASAP
AARP
NRA
COLA