Which of the following would impose the greatest costs to society?
A)high levels of expected inflation
B)low levels of expected inflation
C)variable rates of inflation
D)stable rates of inflation

Question

Which of the following would impose the greatest costs to society?
A)high levels of expected inflation 
B)low levels of expected inflation 
C)variable rates of inflation 
D)stable rates of inflation

Quizplus · Accepted Answer

Variable rates of inflation impose the greatest costs to society because they create uncertainty, making it difficult for businesses and consumers to plan for the future, potentially leading to inefficient investment and consumption decisions.

Which of the Following Would Impose the Greatest Costs to Society