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Questions and Answers
What is the definition of inflation?
What is the definition of inflation?
- A situation of rising prices in the economy
- A sustained decrease in the general price level in an economy
- A sustained increase in the general price level in an economy (correct)
- A situation of falling prices in the economy
What is the effect of inflation on money?
What is the effect of inflation on money?
- It increases the purchasing power of money
- It decreases the purchasing power of money (correct)
- It does not affect the purchasing power of money
- It increases the value of money
When did the biggest decline in the purchasing power of the dollar occur?
When did the biggest decline in the purchasing power of the dollar occur?
- In the 1960s
- In the 1970s (correct)
- In the 1980s
- In the 1990s
