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    Economics Principles and Policy Study Set 2
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    Exam 22: The Goals of Macroeconomic Policy
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    The Main Cost That Low Inflation Imposes on an Economy
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The Main Cost That Low Inflation Imposes on an Economy

Question 15

Question 15

Multiple Choice

The main cost that low inflation imposes on an economy is that low inflation


A) inevitably leads to high inflation.
B) distorts some economic decisions.
C) reduces real wages.
D) benefits lenders at the expense of borrowers.

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