The Main Cost That Low Inflation Imposes on an Economy

question 15

Multiple Choice

The main cost that low inflation imposes on an economy is that low inflation

• A)inevitably leads to high inflation.
• B)distorts some economic decisions.
• C)reduces real wages.
• D)benefits lenders at the expense of borrowers.

---

Definitions:

Work Sample Test

A pre-employment testing method where candidates perform tasks or work activities that mirror the duties of the job they applied for.

Content Validity

The extent to which a test or assessment accurately measures the elements it is intended to measure, ensuring relevance.

Major Job Functions

The primary duties and responsibilities that define a specific job or position within an organization.

Criterion-Related

A term related to validation methods that assess the effectiveness of a tool or process by comparing it with a predefined criterion or standard.