In Nation A,the Price Index Rises from 110 to 120

question 134

Multiple Choice

In Nation A,the price index rises from 110 to 120 in a particular year.In the same year,the price level rises from 120 to 130 in Nation B.This means:

• A) inflation in both nations is 10%.
• B) Nation B suffers from hyperinflation.
• C) both nations suffer from hyperinflation.
• D) Nation A is experiencing inflation but Nation B is experiencing deflation.
• E) Nation A is experiencing inflation of less than 9.1% and Nation B is experiencing inflation of less than 8.4%.

---

Definitions:

Fight or Flight

A physiological response to perceived harmful events, attacks, or threats to survival, preparing the body for defensive or evasive action.

Epinephrine

Also known as adrenaline, a hormone and a neurotransmitter that increases heart rate, muscle strength, blood pressure, and sugar metabolism.

Growth Hormone

A substance in humans and other animals that promotes growth, cell reproduction, and the healing of cells.

Antidiuretic Hormone

A hormone released by the pituitary gland that helps regulate the balance of water in the body by reducing the amount of water excreted by the kidneys.