Podcast
Questions and Answers
When demand-pull inflation occurs, what happens to purchasing power?
When demand-pull inflation occurs, what happens to purchasing power?
When inflation is high, if the increase in price is greater than the increase in nominal income, ______ power decreases.
When inflation is high, if the increase in price is greater than the increase in nominal income, ______ power decreases.
purchasing
Consumers who live off their ______ are especially affected by a decrease in the value of savings due to inflation.
Consumers who live off their ______ are especially affected by a decrease in the value of savings due to inflation.
savings
Who is most affected by the decrease in the value of savings due to inflation?
Who is most affected by the decrease in the value of savings due to inflation?
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When inflation occurs, lower-income consumers are more adversely affected as a higher proportion of their income is spent on ______ goods.
When inflation occurs, lower-income consumers are more adversely affected as a higher proportion of their income is spent on ______ goods.
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When inflation occurs, the real income of ______-income earners remains stable, while that of fixed-income earners decreases.
When inflation occurs, the real income of ______-income earners remains stable, while that of fixed-income earners decreases.
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When inflation occurs, if nominal i/r remains unchanged, savers/lenders are adversely affected as money received (interest or repayments) has lower purchasing ______ vs. money deposited or lent; converse applies to borrowers.
When inflation occurs, if nominal i/r remains unchanged, savers/lenders are adversely affected as money received (interest or repayments) has lower purchasing ______ vs. money deposited or lent; converse applies to borrowers.
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How are fixed-income earners affected when inflation occurs?
How are fixed-income earners affected when inflation occurs?
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Study Notes
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Description
Test your knowledge of the effects of inflation on purchasing power, savings value, and different consumer groups. Learn how demand-pull inflation impacts fixed-income earners and lower-income consumers.
