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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

Correct Answer: I, II and IV only

Last Updated: June 18, 2019