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Economists Consider High and Volatile Inflation to Be

Question 126

Multiple Choice

Economists consider high and volatile inflation to be:


A) a positive factor in economic growth, since higher prices equal higher profits for firms.
B) a negative factor in economic growth, as firms and workers deal with uncertainty about profitability, investments, and wages.
C) neutral regarding its effect on economic growth.
D) beneficial to the government, which often spends before it taxes.

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