The costs of inflation_{--------------------} when inflation is more rapid and_{--------------------} when inflation is more unpredictable. A)increase; decrease B)increase; do not change C)increase; increase D)decrease; increase E)do not change; increase

Question

Quizplus · Accepted Answer

The costs of inflation increase when inflation is more rapid because it erodes purchasing power faster, and they also increase when inflation is more unpredictable because it creates uncertainty, making it difficult for businesses and consumers to plan for the future.

The Costs of Inflation-------------------- When Inflation Is More Rapid

The Costs of Inflation_{--------------------} When Inflation Is More Rapid