Inflation ________.
A)is costly because the classical dichotomy may not always hold
B)that is anticipated (or expected)can be costly
C)is costly for many reasons but chief among them is that inflation makes it more difficult to plan for the future
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All of the above statements are true. Inflation is costly because the classical dichotomy may not always hold, anticipated inflation can be costly, and inflation makes it more difficult to plan for the future.