Author Question: Explain the costs imposed by an increase in inflation. What will be an ideal ... (Read 44 times)

elizabeth18 · **on:** Jun 30, 2018

Explain the costs imposed by an increase in inflation.

What will be an ideal response?

Question 2

In 2014, the average inflation rate in the OECD countries was

A) 1.7.
B) 2.3.
C) 5.2.
D) 3.8.
E) 10.5.

vboyd24 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The answers to this question should include a discussion of: shoe-leather costs, tax distortions, money illusion, and inflation variability.

Answer to Question 2

A