Economics (AS & A Level) · May / June 2022 · Paper 14 · Question 23
9708Price stability
What is a likely consequence of inflation?
- AFixed-income earners gain more than those whose income is gained from the ownership of property.
- BReal wages rise more than money wages.
- CThe assets of creditors decrease in value at the expense of those of debtors.
- DThe domestic purchasing power of money increases.
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Correct answer: C. The assets of creditors decrease in value at the expense of those of debtors.
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