Which statement best characterizes the effect of inflation?
A) It impedes financial markets in their role of allocating resources.
B) It reduces the purchasing power of the average consumer.
C) Generally, it increases after-tax real interest rates.
D) It directly lowers living standards.

Question

Quizplus · Accepted Answer

The Answer of Which statement best characterizes the effect of inflation?
A) It impedes financial markets in their role of allocating resources.
B) It reduces the purchasing power of the average consumer.
C) Generally, it increases after-tax real interest rates.
D) It directly lowers living standards.

Which Statement Best Characterizes the Effect of Inflation