The uncertainty that results from inflation causes changes in:
A) Consumption but not saving and investment behavior.
B) Consumption,saving,and investment behavior.
C) Saving and investment behavior but not consumption.
D) Income but not consumption.

Question

Quizplus · Accepted Answer

Inflation affects the purchasing power of money, which can lead to changes in consumer behavior. Inflation also affects the interest rates, which in turn affects saving and investment behavior. Therefore, inflation can cause changes in consumption, saving, and investment behavior.

The Uncertainty That Results from Inflation Causes Changes In