Inflation Can Become a Major Economic Problem for All of the Following

question 5

Multiple Choice

Inflation can become a major economic problem for all of the following reasons EXCEPT:

• A) it makes it more difficult for people to repay their debts.
• B) it reduces the value of savings.
• C) it leads investors to demand high interest rates.
• D) it erodes the purchasing power of some people.
• E) it makes it more difficult for businesses to plan their long-term future.