Which of the Following Is a Cost of Anticipated Inflation

question 136

Multiple Choice

Which of the following is a cost of anticipated inflation?

• A) Debtors are made worse off.
• B) If people are not fully informed about the price level changes, resources will be misallocated.
• C) The degree of risk associated with investments in the economy increases.
• D) Creditors are made worse off.

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Definitions:

Ration

To distribute or allocate a resource, good, or service in limited amounts, often during shortages or to ensure equitable distribution.

Good

A material item or service that satisfies a human want or need.

Price

The fiscal amount deemed necessary, expected, or expended in purchasing something.

Rationing Device

A method or system used to allocate scarce goods, services, or resources among competing demands.