An Unanticipated Increase in Inflation Is a Problem Since

question 4

Multiple Choice

An unanticipated increase in inflation is a problem since

• A)gains and losses from real wealth transfers cannot be easily predicted
• B)higher inflation always means lower growth in real GDP
• C)it will lead to a decrease in nominal wages
• D)households who hold fixed dollar assets will experience a higher real rate of return
• E)none of the above

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Data Processing

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