Which of the following is true of expected inflation?
a. It increases the efficiency of the economy.
b. It is more of a problem than unexpected inflation.
c. It results in lower prices over time as people make adjustments.
d. It is not a major problem if people can make the right interest rate and income level adjustments.
e. It is necessarily tied to a decline in purchasing power.
d
You might also like to view...
The figure above shows the production possibilities frontier for a country. A combination of 4 million gallons of milk and 4 million gallons of ice cream is
A) unattainable and production efficient. B) attainable and production efficient. C) unattainable. D) attainable and production inefficient. E) More information is needed to determine if the point is attainable or not.
An American consumer buys a French luxury product in New York. In the U.S. balance of payments accounts, this transaction directly appears in
A) the official settlements account. B) the imports part of the current account. C) the net transfers part of the current account. D) the capital and financial account.