Unanticipated Inflation Occurs When

question 149

Multiple Choice

Unanticipated inflation occurs when

• A) everyone knows perfectly the true rate of inflation.
• B) the actual inflation rate differs from the anticipated inflation rate.
• C) the inflation rate is zero.
• D) there is no change in the purchasing power of money.

---

Definitions:

French Declaration

The Declaration of the Rights of Man and of the Citizen, a fundamental document of the French Revolution that outlined individual and collective rights.

Federal Government

The government system in which power is divided between a central authority and various constituent units of the country, such as states or provinces.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939 in response to the Great Depression.