ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Inequality
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Higher interest rates for borrowing
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Uncertainty for businesses
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Falling real incomes
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None of the answers
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Detailed explanation-1: -In an inflationary environment, unevenly rising prices inevitably reduce the purchasing power of some consumers, and this erosion of real income is the single biggest cost of inflation. Inflation can also distort purchasing power over time for recipients and payers of fixed interest rates.
Detailed explanation-2: -Low-income households most stressed by inflation They spend more of their income on necessities such as food, gas and rent-categories with greater-than-average inflation rates-leaving few ways to reduce spending .
Detailed explanation-3: -Lost Purchasing Power. The most obvious impact of inflation is the loss of purchasing power. Higher Interest Rates. Higher Prices For Everything. Economic Growth Slows. Anti-Inflationary Measures Can Cause A Recession. 22-Sept-2022
Detailed explanation-4: -Disproportionately Impacts Low-Income Households. Raises Cost Of Living. Raises Interest Rates. Hurts The Growth Of Stocks And Bonds.