Which statement about inﬂation is correct?
A) Families are always hurt by inﬂation.
B) Inﬂation "subsidizes" those who receive relatively ﬁxed money income.
C) The redistributive effects of inﬂation are arbitrary with respect to people and groups in society.
D) Inﬂation will decrease the real value of property assets and increase the real value of ﬁxed- value assets.

Question

Quizplus · Accepted Answer

Inflation's redistributive effects are indeed arbitrary, affecting different people and groups in various ways depending on factors like income sources, asset types, and spending patterns. Some may benefit from inflation if their income increases faster than the inflation rate, while others may suffer if their income does not keep pace with rising prices.

Which Statement About Inﬂation Is Correct