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?

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Ashlyn Wright

16 November, 22:39

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?

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Answers (2)

Know the Answer?

Clarissa Kane · Answer 1

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

Brayan Castillo · Answer 2

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.