When Inflation Is Anticipated and the Government Fails to Increase

question 51

Multiple Choice

When inflation is anticipated and the government fails to increase its program spending with inflation,the resulting decline in the real value of the government program is best viewed as

• A) a cost of inflation.
• B) a policy choice,rather than a cost of inflation.
• C) a cost of government program.
• D) a social cost.
• E) a cost of hyperinflation.

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