A Major Problem with Inflation Is That After It Starts

question 27

Multiple Choice

A major problem with inflation is that after it starts:

• A) it always stops quickly because the economy always corrects itself naturally.
• B) it is easy to stop as long as it is fully expected.
• C) it is difficult to stop without experiencing high unemployment.
• D) it can never be stopped with any government policy.

---

Definitions:

Neutral Third Party

An unbiased, independent individual or group engaged to help resolve disputes, negotiate agreements, or oversee transactions.

Deposit

A sum of money placed in an account or with a third party as a security for the performance of an obligation or the purchase of something.

Tenancy by the Entirety

A form of joint property ownership reserved for married couples, where each spouse has an equal and undivided interest in the property.

Co-ownership

A legal arrangement where two or more individuals have ownership rights in a property or asset.