Why Is Inflation Considered a Problem

question 4

Multiple Choice

Why is inflation considered a problem?

• A) Firms gain too much economic power.
• B) It is always very high when it exists.
• C) People prefer falling prices.
• D) It is costly for society.
• E) Government gains too much economic power..

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Definitions:

International Water Management Institute

A research organization that focuses on the sustainable use of water and land resources in developing countries to ensure food security and reduce poverty.

Clean Water

Water that is free of pollutants and contaminants, making it safe for human consumption and use.

Outlay

An amount of money spent on something, often related to business or project expenses.

Poverty Rate

The proportion of a population living below the poverty line, measured by income level.