Which of the Following Is a Danger of High Rates

Multiple Choice

Which of the following is a danger of high rates of inflation?

A) Price changes encourage long-term contracts at the expense of short-term contracts.
B) Rapid price changes reduce uncertainty.
C) Inflation increases the real value of assets, such as stocks and bonds.
D) Inflation will encourage people to spend less time producing and more time trying to protect the value of their assets.