Inflation Is Problematic If

question 38

Multiple Choice

Inflation is problematic if

• A)it is less than the percentage increase in nominal income.
• B)it is less than the nominal return on saving.
• C)it equals the growth rate of real GDP in the long run.
• D)it distorts relative prices,causing a misallocation of resources.

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Definitions:

Civil Suit

A legal action by one party against another in a civil court, typically involving disputes over rights, contracts, or damages, as opposed to criminal matters.

Misleading Statement

Any declaration or representation that has the potential to deceive or misinform others, especially in contexts like advertising or public statements.

Corporate Securities

Financial instruments issued by corporations, including stocks and bonds, representing ownership or debt obligations.

Issue Securities

The process by which corporations, governments, or other entities raise capital by distributing financial instruments, including stocks and bonds, to investors.