Which of the following is not an effect of inﬂation that is troublesome to consumers?
A) Household incomes may be rising slower than the overall prices.
B) The purchasing power of people's savings would decrease.
C) Workers' wages may be rising faster than the overall price level.
D) Their standard of living will fall if their household has a ﬁxed nominal income.

Question

Quizplus · Accepted Answer

Workers' wages rising faster than the overall price level would actually be beneficial for consumers as they would have more purchasing power. The other options describe effects of inflation that are troublesome for consumers.

Which of the Following Is Not an Effect of Inﬂation