Which of the following is not generally a cost posed by inflation?
A)Inflation reduces the affordability of goods and services to the average consumer.
B)Consumers and firms lose purchasing power to the extent that money loses value.
C)Firms must pay for changing prices on products and printing new catalogues.
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 primarily involves the general increase in prices, which reduces the purchasing power of money. However, it does not inherently reduce the affordability of goods and services to the average consumer in a direct sense. Affordability is more complex and can be influenced by factors such as wage increases that might accompany inflation. Choices B, C, and D are direct costs or consequences of inflation.

Which of the Following Is Not Generally a Cost Posed