Inflation has no economic costs as long as it is fully expected.

Name: Inflation has no economic costs as long as it is fully expected.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Even if inflation is fully expected, it can still have economic costs such as reducing the purchasing power of money, causing uncertainty in the economy, and distorting the allocation of resources. Higher inflation rates can also lead to higher interest rates, negatively affecting borrowing and lending activity.

Inflation Has No Economic Costs as Long as It Is