Milton Friedman,who won the Nobel Prize in Economics,characterized inflation as being "high and variable." These characteristics of inflation create problems because
A) of future price uncertainty.
B) of arbitrage.
C) of the signal emissions problem.
D) deflation could occur.
E) inflation always becomes hyperinflation.

Question

Quizplus · Accepted Answer

High and variable inflation creates uncertainty about future prices, making it difficult for individuals, businesses, and governments to plan and make decisions. This can lead to inefficiencies, distortions, and even economic instability.

Milton Friedman,who Won the Nobel Prize in Economics,characterized Inflation as Being