1.

Which of the following are costs of inflation ? I- inflation weakens the creation of credit and capital markets II- inflation distorts business behavior especially investment behavior III- inflation increase the price of foreign goods relative to domestic goods IV- Inflation imposes a tax on the holders of money

A. I and II only
B. III and IV only
C. I, II and IV only
D. I, II and III only
Answer» D. I, II and III only


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