Why Is Unanticipated Inflation Usually Viewed as Undesirable

question 112

Multiple Choice

Why is unanticipated inflation usually viewed as undesirable?  

• A) because it reduces everyone's nominal wages 
• B) because it redistributes income and wealth 
• C) because it is accompanied by reductions in real GDP 
• D) because it usually results in the public sector growing less rapidly than the private sector

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