A history graduate student in the United States gets an $18,000 stipend per year. The U.S. sees significant inflation. How might

Question

natulia [17]

3 years ago

13

A history graduate student in the United States gets an $18,000 stipend per year. The U.S. sees significant inflation. How might

the student react?

Business

2 answers:

Snezhnost [94] · Answer 1 · 2022-05-07T06:12:38+03:00

Snezhnost [94]3 years ago

6 0

Answer:

Ask for a cost-of-living increase to her stipend.

Vesnalui [34] · Answer 2 · 2022-05-07T03:43:04+03:00

Answer:

The student might ask for a raise in the stipend.

Explanation:

Inflation in the economy means that the price level will rise. This would lead to a decline in purchasing power. The real income of the student will decline because of the rise in price. In this situation, the student can ask for a raise in stipend proportionate to increase in the price level to counterbalance the inflationary pressures.