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 would fall if their household has a fixed nominal income.

Question

Quizplus · Accepted Answer

If workers' wages are rising faster than the overall price level, it means their real income is increasing, which is beneficial to consumers, not troublesome.

Which of the Following Is Not an Effect of Inflation