Which of the Following Statements About Inflation Is TRUE

question 95

Multiple Choice

Which of the following statements about inflation is TRUE?

• A) The consumer price index is a good way of measuring inflation.
• B) Productivity decreases the purchasing power of consumer dollars.
• C) Inflation increases the purchasing power of consumer dollars.
• D) Localized price increases can cause inflation across the economic system.
• E) The amount of money tends to be distributed evenly during inflationary periods.

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