Unanticipated Inflation Is Usually Viewed as Undesirable Because It

question 18

Multiple Choice

Unanticipated inflation is usually viewed as undesirable because it

• A)reduces everyone's nominal wages
• B)redistributes income and wealth
• C)is accompanied by reductions in real GDP
• D)usually results in the public sector growing less rapidly than the private sector
• E)lets lenders gain at the expense of borrowers

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Definitions:

Offer

A proposal by one party to another regarding a potential contract, indicating a willingness to enter into an agreement under specified terms.

Mailbox Rule

A legal principle that considers a contract offer as accepted once the acceptance has been placed in the mailbox for return, even if it has not yet been received by the offeror.

Acceptance

In contract law, refers to the expression by the offeree to agree to the terms of an offer, resulting in a binding contract.

Offer

A proposal by one party to form a contract, which becomes binding if accepted by the party to whom it's made.