Which is NOT a direct consequence of inflation?
A) Higher unemployment.
B) Purchasing power losses.
C) Lower real incomes to lenders with interest rates below the inflation rate.
D) All of the above are direct consequences of inflation.

Question

Quizplus · Accepted Answer

Higher unemployment is not a direct consequence of inflation. Inflation primarily affects the purchasing power of money and the real incomes of individuals, especially if interest rates are lower than the inflation rate. Unemployment levels are influenced by a variety of factors, including economic growth, technological changes, and structural shifts in the economy, rather than being a direct result of inflation.

Which Is NOT a Direct Consequence of Inflation