Which of the Following Statements About Inflation Is True

question 105

Multiple Choice

Which of the following statements about inflation is true?

• A) The most common measure of inflation is the consumer price index (CPI).
• B) Since 1980, inflation in the United States has risen dramatically.
• C) High inflation is good for interest rates and stock and bond prices.
• D) Inflation has no effect on what we earn in our jobs.
• E) High rates of inflation tend to drive down the cost of borrowing money.

---

Definitions:

Income Levels

Categories of income range that differentiate individuals, households, or other groups based on the amount of money earned from wages, investments, and other sources.

Quantitative

Concerned with, gauging, or determined by the volume of something instead of its merit.

Cultural Assessments

The process of evaluating and understanding the cultural values, beliefs, and practices of a group or community, often used in social, educational, and business contexts.

Values

Principles or standards of behavior that guide the decision-making and lifestyle choices of individuals or societies.