If People Always Perfectly Anticipated and Adjusted to the Inflation

question 21

Multiple Choice

If people always perfectly anticipated and adjusted to the inflation rate, then

• A)real interest rates would be zero
• B)there would be no menu costs
• C)they would still have to worry about shoe-leather costs
• D)the costs of inflation to society would be zero
• E)none of the above

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Definitions:

Primary Dye

A dye used initially in a staining procedure that provides the main coloration for microscopic tissue examination.

Chain-Of-Custody

The documented process or paper trail that records the sequence of custody, control, transfer, analysis, and disposition of materials or samples.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.

Hematuria

Blood in the urine.