One problem with unexpected changes in inflation is that:
A) it steadily erodes real income.
B) it often comes in surprising and unpredictable ways.
C) nominal interest rates are not indexed to inflation.
D) fixed-rate mortgages are not adjusted for inflation.
E) price staggering occurs.

Question

Quizplus · Accepted Answer

Unexpected changes in inflation are problematic because they occur in surprising and unpredictable ways, making it difficult for individuals and businesses to plan financially.

One Problem with Unexpected Changes in Inflation Is That