The Concern Over Inflation

Multiple Choice

The concern over inflation

A) is not justified since gains and losses from real wealth transfers cancel out over time for the economy as a whole
B) is irrational since high inflation generally means high growth
C) is attributable primarily to increased transfers arising from cost-of-living adjustments
D) stems from the fact that inflation is rarely predictable and those households who hold fixed dollar assets will experience a loss in wealth
E) none of the above