Author Question: The overwhelming unpopularity of inflation among citizens is largely a result of the fact that A) ... (Read 38 times)

urbanoutfitters · **on:** Jun 29, 2018

The overwhelming unpopularity of inflation among citizens is largely a result of the fact that

A) inflation raises the real cost of such basic necessities as food, housing, and clothing.
B) inflation reduces the value of real wealth.
C) no one knows what causes it.
D) no one (or almost no one) gains from inflation.
E) people who gain from inflation often erroneously conclude that they are losing as a result of it.

Question 2

The systemic costs and burdens that inflation imposes upon a society are almost entirely the result of

A) government price controls.
B) inability to predict its rate and timing.
C) the fact that no one can ultimately gain from higher prices because everyone is a consumer.
D) the lag between the rise of wage costs and the subsequent rise of prices.
E) the lag between the rise of prices and the subsequent rise of wages.