Saturday 4 June 2011

Help with Aplia Macroeconomics question?

Suppose the inflation rate in Alfonland has increased to 3,100% per year. Which of the following is an example of the cost of inflation?





A. All three scenarios are correct.





B. There is an unintended redistribution of wealth from lenders to borrowers.





C. None of these scenarios are correct.





D. A clothing store has to change the price tags more frequently on goods sold in the store.





E. People stop at the gas station each day to refuel, even if their cars%26#039; gas tanks are 戮 full.|||%26quot;A%26quot; is right answer, because this sort of inflation called %26quot;unexpected%26quot;.