Certain behavior associated with expected inflation can
A) reduce inflation rates overall.
B) allow lenders to collect with more valuable dollars.
C) allow borrowers to pay with more valuable dollars.
D) actually increase the overall rate of inflation.

Question

Quizplus · Accepted Answer

COLAs, for example, can have an inflationary effect on the economy by making a wage-price spiral more likely to occur.

Certain Behavior Associated with Expected Inflation Can