When an economy experiences a zero rate of inflation, which of the following statements is definitely true?

A. Real incomes improve.
B. There is no redistribution of income and wealth because of inflation.
C. Relative prices do not change.
D. Real incomes are affected by money illusion.
E. The level of uncertainty increases in the economy


Answer: B. There is no redistribution of income and wealth because of inflation.

Economics

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