Rising Inflation Means

question 101

Multiple Choice

Rising inflation means

• A) that the price level is increasing by a given percentage rate.
• B) that the prices of all goods and services increase from year to year.
• C) that the price level is rising at an increasing rate.
• D) that the price level is rising at a variable rate.

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Definitions:

Economic value

The monetary worth of a good or service as determined by the market.

Deferred annuity

An annuity contract that delays payments of income, installments, or a lump sum until the investor elects to receive them.

Ordinary annuity

Regular payments of the same amount made at set intervals, during which interest is calculated and added at the end of each period.

Conditional sale contract

An agreement where the sale is conditional upon certain terms, often used in property and vehicle sales where possession is granted but legal ownership is retained by the seller until full payment is received.