People suffering from sticker shock probably have
A)overestimated their real income.
B)underestimated their nominal income.
C)overestimated inflation.
D)underestimated inflation.

Question

Quizplus · Accepted Answer

Sticker shock occurs when people are surprised by the high price of a product or service, and the most likely reason for this is underestimating inflation. If people don't take into account the current level of inflation, they may expect prices to remain static or only rise slightly, when in reality they have increased significantly. Therefore, the best choice is D, "underestimated inflation."

People Suffering from Sticker Shock Probably Have