Arguably the most damaging economic consequence of inflation is:
A) high prices.
B) the uncertainty it can create.
C) the adjustment of sticky wages.
D) the erosion of value of real assets.

Question

Quizplus · Accepted Answer

The uncertainty that inflation can create is arguably its most damaging economic consequence. This is because inflation can make it difficult for businesses to plan for the future, as they are unsure of how much their costs will increase. This can lead to businesses making poor investment decisions, which can have a negative impact on the economy as a whole.

Arguably the Most Damaging Economic Consequence of Inflation Is