In a Market Economy,uncertain Levels of Inflation

Multiple Choice

In a market economy,uncertain levels of inflation

A) make prices less useful as signals for resource allocation.
B) prompt firms to enter into fewer short-term contracts, and more long-term contracts, with suppliers.
C) balance out income redistribution in the long run.
D) are more beneficial to lenders than to borrowers, as lenders have a tendency to overestimate the expected inflation rate.