Which of the Following Statements About Inflation Is True

question 83

Multiple Choice

Which of the following statements about inflation is true?

• A) The consumer price index is a good way of measuring inflation.
• B) Productivity decreases the purchasing power of consumer dollars.
• C) Inflation increases the purchasing power of consumer dollars.
• D) Localized price increases can cause inflation across the economic system.
• E) The amount of money tends to be distributed evenly during inflationary periods.

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Definitions:

Ethical Mindfulness

The practice of being consciously aware of the ethical implications and consequences of our actions in everyday life.

Largely Negative

A term describing predominately negative outcomes, perceptions, or attitudes.

Unethically

Acting in a manner that is morally wrong or not in alignment with accepted standards of behavior.

Individualist

A person who prioritizes personal goals and autonomy over group goals and conformity.