Inflation is NOT a problem:
A) if it is under 15%, as it usually is in the United States.
B) if salaries rise at a slower rate than inflation.
C) if the prices of some goods fall even though the prices of others might be rising.
D) except that when it occurs, it creates uncertainty over future prices (along with other possible deleterious effects).
E) and is not preferred when compared to deflation.

Question

Quizplus · Accepted Answer

Inflation creates uncertainty over future prices, which can have negative effects on the economy, such as reduced investment and savings.

Inflation Is NOT a Problem