Which of the following is true about inflation?
A)Inflation promotes social harmony by uniting people against the government.
B)Inflation is more damaging if it is unanticipated.
C)Accurate anticipation of inflation is possible for everyone who is well informed about economic events.
D)Those who lend money at a rate above the rate of inflation suffer economic losses.
E)If people accurately anticipate inflation,their actions will prevent it.

Question

Quizplus · Accepted Answer

Unanticipated inflation can cause uncertainty and instability in the economy, making it more difficult for both individuals and businesses to plan and make decisions. This can lead to reduced investment, lower economic growth, and increased unemployment. Anticipated inflation, on the other hand, allows individuals and businesses to adjust their behavior accordingly, mitigating some of the negative effects.

Which of the Following Is True About Inflation