Price stability is desirable for all the following reasons except that:
A) income and wealth are moved from those on fixed incomes to those on indexed salaries.
B) real interest rates are not increased to protect lenders against unanticipated inflation.
C) it reduces the difficulty with making decisions about resource allocation.
D) businesses engage in productive activities that emphasize long-term returns.

Question

Quizplus · Accepted Answer

Price stability does not necessarily prevent income and wealth from being moved from those on fixed incomes to those on indexed salaries; this is more related to inflation and how different incomes are adjusted for it.

Price Stability Is Desirable for All the Following Reasons Except