Unanticipated inflation does all of the following EXCEPT:
A)reduce the value of money.
B)reduce the value of debt.
C)cause uncertainty about the future.
D)cause disinflation.

Question

Quizplus · Accepted Answer

Unanticipated inflation can reduce the value of money, reduce the value of debt, and cause uncertainty about the future. However, it does not cause disinflation, which is a decrease in the rate of inflation. In fact, unanticipated inflation often leads to an increase in the rate of inflation, not a decrease.

Unanticipated Inflation Does All of the Following EXCEPT