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If an Economy Experienced Chronic and Severe Inflation Where Prices

Question 22

Multiple Choice

If an economy experienced chronic and severe inflation where prices were adjusted upward on a daily basis:


A) people would want to save more of their incomes than previously.
B) money's ability to serve as a method for accumulating wealth would not be affected.
C) lenders would be less willing to make loans since the value of money would be lower when the loans were repaid.
D) all of the above.

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