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:

Satisfying Product

A product that meets or exceeds customer expectations, providing them with value and satisfaction.

Product Benefit

The value or advantage that a product offers to the customer, addressing their needs or solving their problems, often used as a key selling point.

Buyer

An individual or organization that purchases goods or services.

Use

The application or operation of something for its intended purpose or function.