When Inflation Occurs

question 54

Multiple Choice

When inflation occurs:

• A) the prices of all goods and services rise.
• B) the purchasing power of money rises.
• C) incomes are falling.
• D) the average price level rises.

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Definitions:

Customers

Individuals or businesses that purchase goods or services from another business.

Promptly

Quickly or without delay, often used in the context of responding to communications or fulfilling obligations.

Related Purchasing Activities

Actions and tasks associated with procuring goods and services that are necessary for a company’s operations or production processes.

Ordering

The process of arranging or requesting items or services in a systematic manner, often used in inventory management or procurement.