Which of the following best characterizes the effect of inflation?
A)It impedes financial markets in their role of allocating resources.
B)It reduces the purchasing power of the average consumer.
C)Generally, it increases after-tax real interest rates.
D)It is most costly when anticipated.

Question

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The Answer of Which of the following best characterizes the effect of inflation?
A)It impedes financial markets in their role of allocating resources.
B)It reduces the purchasing power of the average consumer.
C)Generally, it increases after-tax real interest rates.
D)It is most costly when anticipated.

Which of the Following Best Characterizes the Effect of Inflation