Some economists have argued that inflation during the 1970s contributed to the U.S.economy's relatively slow growth rate.What is the basis for this view?
A)Inflation usually lowers employment,thus slowing growth.
B)If inflation is anticipated,it is particularly harmful because cost of living increases are built into wage settlements,which only worsens the problem.
C)High and variable inflation rates increased uncertainty,thus making business decisions more difficult.
D)Lenders were less interested in making short-term loans than in making long-term loans.
E)Inflation during the 1970s created increased activity on Wall Street,which drew funds that could have been used for truly productive purposes.

Question

Quizplus · Accepted Answer

High and variable inflation rates create uncertainty, making it difficult for businesses to plan and invest, which can slow economic growth.

Some Economists Have Argued That Inflation During the 1970s Contributed