Economic Theory Argues That There Will Be Fewer Real Effects

question 95

Multiple Choice

Economic theory argues that there will be fewer real effects from inflation as long as the

• A)actual rate of inflation is less than 5%.
• B)anticipated rate of inflation is more than the actual rate of inflation.
• C)anticipated rate of inflation is less than the actual rate of inflation.
• D)inflation is fully anticipated and no one changes their behaviour.
• E)whole private sector is unaware that it is happening.