Inflation is undesirable because it leads to:
A) purchasing power losses.
B) lower real incomes to lenders with interest rates lower than the inflation rate.
C) increases in property prices, which can keep the less wealthy from acquiring assets.
D) all of the above.

Question

Quizplus · Accepted Answer

Inflation is undesirable because it erodes purchasing power, reduces real incomes for lenders when interest rates are lower than the inflation rate, and can lead to increases in property prices, making it harder for less wealthy individuals to acquire assets.

Inflation Is Undesirable Because It Leads To