Author Question: Which of the following is true of expected inflation? a. It increases the efficiency of the ... (Read 51 times)

ghost! · **on:** Jun 30, 2018

Which of the following is true of expected inflation?
a. It increases the efficiency of the economy.
b. It is more of a problem than unexpected inflation.
c. It results in lower prices over time as people make adjustments.
d. It is not a major problem if people can make the right interest rate and income level adjustments.
e. It is necessarily tied to a decline in purchasing power.

Question 2

A tax cut will lead to higher inflation is an example of a positive economic statement.
a. True
b. False
Indicate whether the statement is true or false