The redistributive mechanics of inflation include all of the following except
A)Price effects.
B)Income effects.
C)Wealth effects.
D)Output effects.

Question

Quizplus · Accepted Answer

Output effects do not relate to the redistributive mechanics of inflation. Price effects lead to a transfer of wealth from buyers to sellers, income effects cause a redistribution of income from individuals with fixed incomes to those with variable incomes, and wealth effects result in a transfer of wealth from lenders to borrowers.

The Redistributive Mechanics of Inflation Include All of the Following