In the 1970s,the Government Attempted to Regulate Prices to Control

Multiple Choice

In the 1970s,the government attempted to regulate prices to control inflation; this attempt was unsuccessful.The most likely reason was that

A) it increased menu costs.
B) it created future price certainty.
C) it removed relative price signals for those items that had actual increases in demand that were not due to inflation.
D) it created money illusion.
E) the Watergate break-in destroyed Americans' faith in the government.