In a Market Economy,uncertain Levels of Inflation

question 32

Multiple Choice

In a market economy,uncertain levels of inflation

• A) make prices less useful as signals for resource allocation.
• B) prompt firms to enter into fewer short-term contracts, and more long-term contracts, with suppliers.
• C) balance out income redistribution in the long run.
• D) are more beneficial to lenders than to borrowers, as lenders have a tendency to overestimate the expected inflation rate.

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Definitions:

Pushes

A term generally referring to the act of applying force to move something away from oneself or the act of promoting or encouraging a particular activity, idea, or direction.

Gluteal Areas

Regions of the body pertaining to the buttocks, where muscles and fat are concentrated.

Iliac Veins

Veins located in the pelvis that collect blood from the lower limbs and pelvic organs, draining into the inferior vena cava.

Served

To have provided a service or met a need, often in a context of food, legal documents, or information.