One of the costs associated with predictable inflation is:
A)tax distortions.
B)budget charges.
C)overheads.
D)None of these is a cost of inflation.

Question

Quizplus · Accepted Answer

Predictable inflation can lead to tax distortions, such as when nominal gains are taxed as if they were real gains, which can discourage investment and savings. This can ultimately harm economic growth and prosperity.

One of the Costs Associated with Predictable Inflation Is