The Inflation Rate in January of 2009 as Measured by the CPI

question 188

Multiple Choice

The inflation rate in January of 2009 as measured by the CPI was zero.If inflation were to remain at zero for a long period, what would be the effect on velocity?

• A)It will decrease.
• B)It will increase.
• C)It will remain constant.
• D)Velocity is unrelated to interest rates.

---

Definitions:

SMTP

Simple Mail Transfer Protocol; a standard protocol used for sending emails across the Internet, ensuring the reliable and secure delivery of outgoing mail.

PGP

Pretty Good Privacy, a data encryption and decryption computer program that provides cryptographic privacy and authentication for data communication. PGP is often used for securing emails.

Encryption

Encoding information or data to protect it against access by unauthorized individuals.

Public-key Encryption

An encryption method that uses a pair of keys, one for encrypting the message (public key) and one for decrypting it (private key).