Answer to Question #338167 in Macroeconomics for Yaya

Question

Which one of the following is NOT an effect of higher inflation?

a. 

An increase in the cost of living.

a. An increase in the cost of living.

b. 

An increase in the standard of living.

b. An increase in the standard of living.

c. 

Redistribution of wealth from the lender to the borrower.

c. Redistribution of wealth from the lender to the borrower.

d. 

A decrease of the real value of existing savings.

Answer 1

b. 

An increase in the standard of living.