Inflation Is Problematic If

question 38

Multiple Choice

Inflation is problematic if

• A)it is less than the percentage increase in nominal income.
• B)it is less than the nominal return on saving.
• C)it equals the growth rate of real GDP in the long run.
• D)it distorts relative prices,causing a misallocation of resources.

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Definitions:

Alfred Wallace

A British naturalist, explorer, and biologist who independently proposed the theory of evolution by natural selection.

Natural Selection

A process by which species adapt to their environment as individuals with advantageous traits survive and reproduce more successfully than others.

Evolution

The process through which species undergo genetic changes over generations, leading to the development of new species.

Common Ancestor

An ancestral form or species from which two different species or groups have evolved.