Suppose We Have Inflation That Is Fully Anticipated by Workers,firms,and

Multiple Choice

Suppose we have inflation that is fully anticipated by workers,firms,and consumers.In this case,the inflation

A) leads to reductions in real incomes for all workers.
B) is hard to predict.
C) improves the efficiency of the price system.
D) does not impact the purchasing power of individuals whose incomes are fully indexed to inflation.
E) has no real or nominal effects in the economy.