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