Which of the Following Statements Is FALSE

Multiple Choice

Which of the following statements is FALSE?

A) Inflation can penalize persons wishing to acquire assets, such as homes.
B) Persons who loan money to others benefit if the inflation rate is greater than the interest rate on the loan.
C) Persons whose incomes are adjusted through COLAs have an easier time keeping up with price increases than persons living on fixed incomes.
D) To maintain the same purchasing power during inflation, money income must rise to compensate for price increases and increases in taxes and Social Security contributions.