A central policy concern about inflation is to see that it:
A)does not become built into expectations.
B)does not redistribute income.
C)does redistribute income.
D)does become built into expectations.

Question

Quizplus · Accepted Answer

When inflation becomes built into expectations, it can lead to a self-perpetuating cycle of inflation, where businesses and individuals expect prices to continue rising and adjust their behavior accordingly, potentially worsening the inflation situation.

A Central Policy Concern About Inflation Is to See That