Inflation That Is Fully Anticipated by Workers, Firms, and Consumers

Inflation that is fully anticipated by workers, firms, and consumers

A) is hard to predict.
B) leads to reductions in real incomes for all workers.
C) improves the efficiency of the price system.
D) does not impact the purchasing power of individuals whose incomes are fully indexed to inflation.
E) has no real or nominal effects in the economy.