A worrisome outcome of chronic inflation is that it tends to ________.

A worrisome outcome of chronic inflation is that it tends to ________.



A) erode confidence in a country's currency
B) give central banking officials excessive flexibility to manage monetary policy
C) increase the real income of people, thereby inflating their spending and borrowing levels
D) lower consumer demand for foreign goods, which triggers lower prices and eventually lower employment





Answer: A


Learn More :