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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]3 years ago
6 0

Answer:

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

Vesnalui [34]3 years ago
5 0

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.

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