Which of the Following Statements About Inflation Is True

question 157

Multiple Choice

Which of the following statements about inflation is true?

• A) The consumer price index (CPI) 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) None of the above

---

Definitions:

Statute of Limitations

The law that sets the maximum time after an event within which legal proceedings may be initiated.

Truth in Lending Act (TILA)

A federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Finance Charges

Fees represented as the cost of credit to the borrower, which includes interests and other charges.

Installment Payment Plan

A financial arrangement that allows a buyer to pay for goods or services over a period of time in several smaller payments.