Which of the following is not a cost posed by inflation?
A)Inflation reduces the affordability of goods and services to the average consumer.
B)The money that consumers and firms hold loses its purchasing power.
C)Firms must pay for changing prices on products and printing new catalogs.
D)Banks can lose if they under predict inflation and charge an interest rate that does not completely compensate for inflation.

Question

Quizplus · Accepted Answer

Inflation does not necessarily reduce the affordability of goods and services to the average consumer, as wages and incomes may also rise with inflation. The other options describe real costs associated with inflation.

Which of the Following Is Not a Cost Posed by Inflation