During periods of inflation, which event does NOT occur?
A) Mortgage lenders seek inflation adjustments.
B) Workers seek escalator clauses.
C) People on a fixed income have increased standards-of-living.
D) People on a fixed income have decreased standards-of-living.

Question

Quizplus · Accepted Answer

During periods of inflation, the purchasing power of money decreases, which means that people on a fixed income have decreased standards-of-living. Mortgage lenders and workers may seek inflation adjustments through escalator clauses, but people on a fixed income cannot increase their income to keep up with inflation, leading to a decrease in their purchasing power. Therefore, option C is the incorrect statement.

During Periods of Inflation, Which Event Does NOT Occur