Economic Theory Argues That There Will Be Fewer Real Effects

question 52

Multiple Choice

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

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

---

Definitions:

Dynamic

Characterized by constant change, activity, or progress; not static.

Prosocial Behavior

Actions intended to benefit others, including behaviors like helping, sharing, and comforting, indicative of empathy and concern for the welfare of others.

Social Anxiety

A disorder characterized by overwhelming anxiety and excessive self-consciousness in everyday social situations.

Needs-Oriented Reasoning

A decision-making process focusing on fulfilling the needs of individuals or groups.