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Does Rapid Inflation Make Holding a Large Amount of Money

Question 125

Multiple Choice

Does rapid inflation make holding a large amount of money a wise decision?


A) No, because the opportunity cost of holding liquid assets is high.
B) Yes, because you will generally need more and more to buy the goods and services you want.
C) No, because someone might steal it or it might be destroyed.
D) Yes, because the opportunity cost of holding liquid assets is high.

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