Economic Theory Argues That There Will Be Fewer Real Effects

question 95

Multiple Choice

Economic theory argues that there will be fewer real effects from inflation as long as the

• A)actual rate of inflation is less than 5%.
• B)anticipated rate of inflation is more than the actual rate of inflation.
• C)anticipated rate of inflation is less than the actual rate of inflation.
• D)inflation is fully anticipated and no one changes their behaviour.
• E)whole private sector is unaware that it is happening.

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Definitions:

Norepinephrine

A neurotransmitter involved in arousal, as well as in learning and mood regulation.

Serotonin

A chemical messenger crucial for moderating emotions, digestive processes, sleep patterns, and various other physiological activities.

GABA

Gamma-aminobutyric acid, a neurotransmitter in the brain that plays a key role in inhibiting nerve transmission, thus reducing neuronal excitability.

Acetylcholine

A neurotransmitter involved in many functions including muscle movement and memory.