Which of the Following Statements About Inflation Is Correct

question 16

Multiple Choice

Which of the following statements about inflation is correct?

• A)Evidence from studies indicates that,in U.S.newspapers,inflation is mentioned less frequently than other economic terms,such as unemployment and productivity.
• B)People believe the inflation fallacy because they tend to believe too strongly in the principle of monetary neutrality.
• C)Nominal incomes are determined by nominal factors;they are not affected by real factors.
• D)Inflation does not in itself reduce people's real purchasing power.

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Definitions:

Neurons

Specialized nerve cells that communicate information by sending electrical and chemical signals.

Intellect

The faculty of reasoning and understanding objectively, especially with regard to abstract or academic matters.

Lewy Body Disease

A form of major neurocognitive disorder characterized by an increase in Lewy body cells in the brain. Symptoms include visual hallucinations, momentary loss of attention, falling, and fainting.

Vascular Disease

Vascular disease is characterized by sporadic, and progressive, loss of intellectual functioning caused by repeated infarcts, or temporary obstructions of blood vessels, which prevent sufficient blood from reaching the brain. (formerly called vascular or multi-infarct dementia.)