Inflation Is Undesirable Because It

question 32

Multiple Choice

Inflation is undesirable because it:

• A)arbitrarily redistributes real income and wealth
• B)is always cumulative; that is, creeping inflation invariably causes high rates of inflation
• C)reduces everyone's standard of living
• D)is always accompanied by a declining real output
• E)can lead to higher unemployment

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Definitions:

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Prenatal Development

The process of growth and development within the womb from conception to birth.

Stages

Distinct phases within a development process or sequence of events through which individuals or systems pass.

Primary Sexual Characteristics

These are the physical features directly involved in reproduction, such as the ovaries in females and the testes in males.