Economists generally argue that
A)neither high inflation nor moderate inflation is very costly.
B)costs of both high and moderate inflation are quite large.
C)high inflation is costly, but costs of moderate inflation are not nearly as large as the public believes.
D)costs of moderate inflation are nearly zero whereas high inflation is quite costly.

Question

Quizplus · Accepted Answer

High inflation is widely recognized as costly due to its unpredictability and impact on economic decisions, while the costs of moderate inflation are often considered to be lower than public perception suggests. Moderate inflation can have some benefits, such as avoiding deflation and potentially helping to lubricate the wheels of the economy.

Economists Generally Argue That