Why Is High and Uncertain Inflation Damaging to the Economy

Multiple Choice

Why is high and uncertain inflation damaging to the economy? Because in the presence of high and uncertain inflation,

A) the price system is no longer capable of effectively signalling changes in relative scarcity through changes in relative prices.
B) individuals who receive their incomes in fixed nominal terms are made worse off.
C) there can be unexpected reallocations of real income between workers and firms.
D) there can be unexpected reallocations of real income between borrowers and lenders.
E) All of the above.