An individual can, to some degree, reduce her vulnerability to high and unanticipated inflation by A: insisting on long-term wage contracts B: holding long-term bonds C: holding cash D: wage indexation E: all of the above

The inflation tax A: transfers wealth from the government to households. B: is the increase in real income taxes due to lack of indexation in income tax rules. C: is a tax on everyone who holds money. D: All of the above are correct.

Labor contracts that include so-called COLA provisions A: tend to link money wages to price increases B: serve to preserve the purchasing power of workers C: are a common form of wage indexation in many labor markets D: often tie nominal wages to a specific price index E: all of the above