Inflation CCI Review Questions with Complete Solutions Latest Update (Rated 100%)
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Course
Inflation CCI
Institution
Inflation CCI
Inflation CCI Review Questions with Complete Solutions Latest Update (Rated 100%)
The main result of inflation is
increasing consumer demand.
reducing the purchasing power of the dollar.
pushing most prices down.
making everyday products unaffordable. - Answers reducing the purchasing...
Inflation CCI Review Questions with Complete Solutions Latest Update (Rated 100%)
The main result of inflation is
increasing consumer demand.
reducing the purchasing power of the dollar.
pushing most prices down.
making everyday products unaffordable. - Answers reducing the purchasing power of the dollar.
Which of the following is a true statement regarding inflation:
It is always caused by consumer demand.
It is a general trend in which some prices may go down.
It does not affect everyone in the economy.
It harms businesses and the economy. - Answers It is a general trend in which some prices may go
down.
"Too much cash chasing too few goods" is a description of
cost-push inflation.
demand-pull inflation.
hyperinflation.
deflation. - Answers demand-pull inflation.
Limited commodities can cause
inflation targeting.
demand-pull inflation.
cost-push inflation.
price stability. - Answers cost-push inflation.
, The U.S. government aims to keep inflation at two percent. This is called
inflation targeting.
deflation.
price stability.
hyperinflation. - Answers inflation targeting.
Which of the following is a benefit of low, controlled inflation:
The reduced purchasing power of the dollar
The government's ability to adjust interest rates
The strength of labor unions
The scarcity of certain commodities - Answers The government's ability to adjust interest rates
Which type of inflation is harmful to the economy?
Cost-push inflation
Negative inflation
Demand-pull inflation
Hyperinflation - Answers Hyperinflation
The main goal of inflation targeting is
price stability.
a decrease in the inflation rate.
an increase in the money supply.
deflation. - Answers price stability.
When prices don't change rapidly and the value of money is stable, it results in
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