The efforts of individuals to protect themselves against losses as a result of inflation
A) are irrational because one person's loss as a result of inflation is someone else's gain.
B) can only succeed if everyone correctly anticipates the rate and timing of inflation.
C) cannot succeed because no private citizen has the ability to stop inflation.
D) use up valuable resources that could have been employed in other ways.
D
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By the mid-nineteenth century,
(a) indentured servitude disappeared in the U.S. (b) slavery was disappearing. (c) more and more immigrants were drawn into the production of agricultural goods on large plantations. (d) all of the above were true.
Suppose that the cost of living is 25 percent higher in Chicago than in Indianapolis. If wages in Chicago are 10 percent higher on average than wages in Indianapolis, then eventually the labor supply will
a. fall in Indianapolis, increasing the average wage there b. fall in Chicago, increasing the average wage there c. rise in Indianapolis, increasing the average wage there d. rise in Chicago, decreasing the average wage there e. fall in Indianapolis, decreasing the average wage there