"When economies experience high levels of inflation, the ability of money to act as a unit of account diminishes, and it becomes harder to make decisions." Which of the following costs of inflation does this statement describe?

The spending multiplier is:

a. 1 / (1 ? MPC). b. 1 ? MPC. c. MPC. d. MPC / (1 ? MPC).

According to the concept of framing effects:

A. advertising power is limited because of the inability of firms to change consumers' perspectives. B. all people will assign the same utility to a given situation, regardless of their previous status quo. C. whether a new situation is viewed as a gain or a loss depends on one's starting position. D. firms should never raise prices or reduce wages.