Which of the Following Is a True Statement

question 29

Multiple Choice

Which of the following is a true statement?

• A)Unanticipated inflation is a change in the general level of prices that catches most decision makers by surprise.
• B)High and variable rates of inflation are easy for decision makers to forecast accurately.
• C)High and variable rates of inflation can increase GDP by reducing investment.
• D)When decision-makers are able to anticipate slow, steady rates of inflation, prices become more unstable and there is a negative impact on the level of prosperity.

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Definitions:

FICA-Social Security

A U.S. government program funded by payroll taxes, providing retirement benefits, disability income, and survivor benefits.