When the Inflation Rate of a Country Is High Over

question 175

Multiple Choice

When the inflation rate of a country is high over a lengthy time period,

• A) the year-to-year variability in the rate of inflation is generally small.
• B) the year-to-year variability in the rate of inflation is generally large.
• C) decision makers will be able to forecast future rates of inflation accurately.
• D) there is no reason to believe that the inflation will exert harmful side effects on real output and the prosperity of the country.