Both unexpected inflation and unexpected deflation create uncertainty about the future.

Question

Quizplus · Accepted Answer

Both unexpected inflation and unexpected deflation can lead to uncertainty about future economic conditions, as they can impact prices, financial markets, and overall economic activity in unpredictable ways. For example, unexpected inflation can make it difficult for people to plan for future expenses, while unexpected deflation can lead to reduced consumer and business spending and potentially increase debt burdens.

Both Unexpected Inflation and Unexpected Deflation Create Uncertainty About the Future