Inflation may impose little,if any,cost on the economy,if ________.
A)laws against excessive price increases are enforced effectively
B)the government subsidizes menu costs
C)price increases are fully anticipated
D)the Fisher effect holds true
E)the rate of price increase is so slow that people do not feel compelled to alter their behavior

Question

Quizplus · Accepted Answer

The correct answer is E because when the rate of price increase is so slow that people do not feel compelled to alter their behavior, inflation may impose little, if any, cost on the economy.

Inflation May Impose Little,if Any,cost on the Economy,if ________