Which of the following could the government do to decrease the costs of inflation without lowering the inflation rate?
A)Avoid unexpected changes in the inflation rate.
B)Rewrite the tax laws so that nominal gains were taxed instead of real gains.
C)Make policy that would discourage firms from issuing indexed bonds.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Avoiding unexpected changes in the inflation rate can help reduce the costs associated with inflation, such as uncertainty and planning difficulties, without necessarily lowering the inflation rate itself.

Which of the Following Could the Government Do to Decrease