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What Could the Government Do to Decrease the Costs of Inflation

Question 115

Multiple Choice

What could the government do to decrease the costs of inflation without lowering the inflation rate?


A) avoid unexpected changes in the inflation rate
B) rewrite the tax laws so that nominal gains were taxed instead of real gains
C) make policy that would discourage firms from issuing indexed bonds
D) pass legislation to discourage inflation-adjusted work contracts

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