Which of the Following Statements About Inflation Is True

question 63

Multiple Choice

Which of the following statements about inflation is true?

• A)Both anticipated and unanticipated inflation are costly.
• B)Anticipated inflation is not costly,but unanticipated inflation is costly.
• C)Anticipated inflation is costly,but unanticipated inflation is not costly.
• D)The cost of anticipated inflation is much higher than that of unanticipated inflation.

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Definitions:

Future Costs

Costs that will be incurred in the future as a result of current decisions or plans.

Alternatives

Different options or strategies available to be chosen in decision-making processes.

Future Costs

These are costs expected to be incurred in the future as a result of current or future actions.

Alternatives

Different options or strategies available for achieving a specific goal or solving a problem.