Inflation Quiz

Decrease in taxes leading to increased disposable income

Decrease in money supply by the central bank

Increase in government spending on infrastructure projects (correct)

Increase in savings rate leading to decreased consumer spending

Increase in government subsidies for essential goods

Decrease in production costs due to technological advancements

Decrease in oil prices leading to lower transportation costs

Increase in wages due to strong labor union negotiations (correct)

Promotes sustainable economic growth and development

Encourages long-term investment due to stable prices

Leads to a decrease in the velocity of money circulation

Reduces the real value of money and savings (correct)