Which of the Following Is Not a Likely Consequence of Inflation

question 31

Multiple Choice

Which of the following is not a likely consequence of inflation?

• A) Firms incur the "menu costs" of changing advertisements
• B) Some taxpayers are pushed into higher tax brackets
• C) The value of currency is reduced
• D) Banks reduce nominal interest rates to reflect expected inflation
• E) Price signals sent by consumers to firms are distorted

---

Definitions:

Template

A pre-designed framework that can be used to create new documents or projects by filling in specific details.

XML Tags

Markup symbols used in XML (Extensible Markup Language) to define elements within a document for easy data sharing and transport.

Text File

A type of computer file that consists of text without special formatting, typically readable by humans and machines alike.

Importing

The process of bringing data or media from one application into another to use or manipulate it.