Question

Why might students be affected adversely by inflation?

A)Teachers would lose their jobs. B)Students usually work for low wages. C) Many students would lose their jobs. D)School lunch costs would rise sharply.

Answer 1

The correct answer is B)Students usually work for low wages.

Inflation is the increase in the prices of goods and services over time. Often expressed as a percentage. Inflation reduces the purchasing power of each unit of currency. U.S. inflation has reduced the value of the dollar. Compare the dollar's value today with that in the past. And it is the opposite of deflation which indicates a general decline occurring in prices for goods and services when the inflation rate falls below 0 percent.