Day: August 4, 2021

Which effect of inflation is described as redistributive?

Select ONE answer:

1. the improvement in the terms of trade
2. the increased reluctance of people to hold money
3. the inconvenience of frequently changing prices
4. the loss of purchasing power of people on fixed incomes

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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