Which of the Following Statements About Inflation Is True

question 135

Multiple Choice

Which of the following statements about inflation is true?

• A) Inflation increases the purchasing power of consumer dollars.
• B) Inflation occurs when people have more money to spend as the quantity of goods available increases.
• C) Inflation occurs when the amount of money taken out of the economy exceeds the amount of money put into the economy.
• D) Inflation and deflation are really almost synonymous in practice.
• E) None of these.