Which of the Following Is True of Inflation

question 88

Multiple Choice

Which of the following is true of inflation?

• A) It is an increase in the general price level of goods and services.
• B) The purchasing power of money increases as the result of inflation.
• C) Inflation is similar to interest payments on future money income, such as pensions and receipts from outstanding loans.
• D) Inflation has no effect on real income.

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