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Question #48540

Which of the following are costs of inflation ?

Options:

A) I- inflation weakens the creation of credit and capital markets

B) II- inflation distorts business behavior especially investment behavior

C) III- inflation increase the price of foreign goods relative to domestic goods

D) IV- Inflation imposes a tax on the holders of money

Answer: Which of the following are costs of inflation I- inflation weakens the creation of credit and capital markets.

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