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All of the Following Are the Benefits of High Inflation

Question 56

Multiple Choice

All of the following are the benefits of high inflation except one, which is:


A) since money is not losing its purchasing power, consumers and producers feel safe to make long-range plans.
B) sustained low inflation does not stimulate productive investment.
C) interests, both in real and nominal terms, are lower, encouraging investments to improve productivity.
D) the economy does not see a vicious circle of rising inflation due to rising wages and interest rates.

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