Which of the Following Statements About Inflation Is True

question 110

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:

Montgomery Bus Boycott

A pivotal civil rights protest in 1955-1956 in Montgomery, Alabama, where African Americans refused to ride city buses to challenge racial segregation.

Rosa Parks

An African American civil rights activist whose refusal to give up her seat on a Montgomery, Alabama bus in 1955 became a symbol of the fight against racial segregation.

NAACP

The National Association for the Advancement of Colored People, an organization founded in 1909 to fight for the civil rights of African Americans.

Executive Secretary

A high-ranking administrative assistant or officer who provides support to top executives by handling communication, organizing schedules, and performing administrative duties.