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Which of the following is not generally a cost posed by inflation? Question 13 options: Firms...

Which of the following is not generally a cost posed by inflation?

Question 13 options:

Firms must pay for changing prices on products and printing new catalogues.

Consumers and firms lose purchasing power to the extent that money loses value.

Banks can lose if they under-predict inflation and charge an interest rate that does not completely compensate for inflation.

Inflation reduces the affordability of goods and services for the average consumer.

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Answer #1

Consumers and firms lose purchasing power to the extent that money loses value.

Explanation: Firms do not lose purchasing power as the price of goods and services go up because of inflation and firms are compensated.

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