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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?

2 Answers

3 votes

Answer:

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

User Jair Reina
by
8.1k points
2 votes

Answer:

The student might ask for a raise in the stipend.

Step-by-step 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.

User Sujiz
by
8.5k points
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