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Q. A newspaper article once reported that U.S. economy was experiencing a low rate of inflation. It said that "low inflation has a downside: 45 million recipients of Social Security and or profits will see their checks go up by just 2.8 percent next year."

• Why does inflation affect increase in Social Security and or profits?
• Is this effect a cost of inflation, as article suggests? Why or why not?

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Business Economics, Economics

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