Economic Theory Argues That There Will Be Fewer Real Effects

Multiple Choice

Economic theory argues that there will be fewer real effects from inflation as long as the

A) actual rate of inflation is less than 5%.
B) anticipated rate of inflation is more than the actual rate of inflation.
C) anticipated rate of inflation is less than the actual rate of inflation.
D) inflation is fully anticipated and no one changes their behaviour.
E) whole private sector is unaware that it is happening.