During a period of unpredictable inflation,
A) the value of money changes unpredictably.
B) the price level falls unpredictably.
C) the economy is unharmed.
D) the Consumer Price Index falls.

Question

Quizplus · Accepted Answer

During a period of unpredictable inflation, the value of money changes unpredictably, potentially resulting in fluctuations in prices, production, and wages. This can create uncertainty and instability in the economy. The Consumer Price Index may or may not fall, depending on various factors such as supply and demand pressures.

During a Period of Unpredictable Inflation