Lower Rates of Inflation Increase Planned Spending Because

Multiple Choice

Lower rates of inflation increase planned spending because:

A) the Fed reacts to the lower inflation by lowering interest rates.
B) the reduction in wealth, resulting from the reduced real value of money, restrains spending.
C) resources are redistributed from high-spending households to low-spending households.
D) the prices of domestic goods sold abroad increase (with a constant exchange rate) .