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The Costs of Anticipated Inflation, as Typically Measured

Question 10

Multiple Choice

The costs of anticipated inflation, as typically measured


A) are largest when the central bank adheres to a Friedman rule.
B) are small at inflation rates of around 10%.
C) fall over time, if the inflation persists.
D) are large as long as inflation is positive.
E) are small even when there is a hyperinflation.

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