Arguably the most damaging economic consequence of inflation is:
A)high prices.
B)the uncertainty it can create.
C)the adjustment of sticky wages.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

Inflation can create uncertainty for businesses and individuals as it becomes difficult to predict future prices and incomes. This can lead to reduced investment, saving, and spending, ultimately harming the economy. While high prices and sticky wages are also negative consequences of inflation, the uncertainty it creates is arguably the most damaging. Therefore, option B is the best choice.

Arguably the Most Damaging Economic Consequence of Inflation Is