Which of the Following Is True of Inflation

question 1

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 resources.

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Definitions:

C$0.0033

A specific monetary value in Canadian dollars, equivalent to 0.33 cents.

Euros

The official currency of the Eurozone, used by 19 of the 27 European Union countries.

C$1,500

Canadian dollars one thousand five hundred, often used in financial transactions to denote currency amount.

Airport Exchange Kiosk

An airport exchange kiosk is a physical location within an airport where travelers can exchange their home currency for that of their destination country.