If all wages, salaries, welfare benefits, and other sources of income were indexed to inflation, O A. inflation may not have negative impacts on people's purchasing power, but it will still have harmful effects on the economy by increasing administrative costs and inefficiencies. O B. inflation will have no negative effect on the economy. O C. inflation will benefit both debtors and creditors. O D. inflation will lower the purchasing power of people on fixed income.
If all wages, salaries, welfare benefits, and other sources of income were indexed to inflation, O A. inflation may not have negative impacts on people's purchasing power, but it will still have harmful effects on the economy by increasing administrative costs and inefficiencies. O B. inflation will have no negative effect on the economy. O C. inflation will benefit both debtors and creditors. O D. inflation will lower the purchasing power of people on fixed income.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:If all wages, salaries, welfare benefits, and other sources of income were indexed to inflation,
O A. inflation may not have negative impacts on people's purchasing power, but it will still have harmful effects on the economy by increasing administrative costs and inefficiencies.
O B. inflation will have no negative effect on the economy.
O C. inflation will benefit both debtors and creditors.
O D. inflation will lower the purchasing power of people on fixed income.
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