If you are living in a period of continued high inflation on a fixed income (that is NOT indexed),what is the impact on the cost of the goods and services you buy and your income?
A)the cost of goods and services increases and your income remains the same
B)the cost of goods and services decreases and your income remains the same
C)the cost of goods and services and your income both increase
D)the cost of goods and services and your income both decrease

Question

Quizplus · Accepted Answer

In a period of high inflation, the cost of goods and services increases, while the fixed income remains the same. This means that people with a fixed income will have to spend more money to purchase the same amount of goods and services they were able to buy before. Essentially, their purchasing power has decreased.

If You Are Living in a Period of Continued High