How might a rapid rise in inflation harm you?  How might a rapid rise in inflation help you?  In answering this question consider your role as both a consumer, worker, and borrower.  Consider the likely effect on your real wages, and any interest you receive as a saver.  Would it be advantageous to borrow money if you expected inflation to rise?   Does it make economic sense to open a savings account at a bank given the latest increase in the CPI.

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter17: Stabilizing The National Economy
Section: Chapter Questions
Problem 24AA
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How might a rapid rise in inflation harm you?  How might a rapid rise in inflation help you?  In answering this question consider your role as both a consumer, worker, and borrower.  Consider the likely effect on your real wages, and any interest you receive as a saver.  Would it be advantageous to borrow money if you expected inflation to rise?   Does it make economic sense to open a savings account at a bank given the latest increase in the CPI.

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