The Costs of Anticipated Inflation, as Typically Measured

question 12

Multiple Choice

The costs of anticipated inflation, as typically measured

• A)are largest when the central bank adheres to a Friedman rule.
• B)are small at inflation rates of around 10%.
• C)fall over time, if the inflation persists.
• D)are large as long as inflation is positive.
• E)are small even when there is a hyperinflation.

---

Definitions:

Dissociative Episode

A temporary incident of dissociation that can result in a disconnect between a person's thoughts, identity, consciousness, or memory.

Postpartum Depression

A complex mix of physical, emotional, and behavioral changes that happen in some women after giving birth, characterized by feelings of sadness, emptiness, or hopelessness.

Bipolar Depression

A mental health condition characterized by extreme mood swings including emotional highs (mania or hypomania) and lows (depression).

Couvade

A phenomenon where expectant fathers experience pregnancy symptoms like weight gain, nausea, and mood swings.