If Prices Increase Rapidly

question 10

Multiple Choice

If prices increase rapidly

• A) money's usefulness as a store of value is diminished.
• B) money increases in value.
• C) deflation is likely.
• D) prices will decline to their normal level.

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Definitions:

Probability

The chance of a particular outcome occurring, often quantified as a number between 0 (impossible) and 1 (certain).

Subway Waiting

The period of time passengers wait for a subway train to arrive at a station.

Normal Distribution

A probability distribution that is evenly balanced around the mean, indicating that values close to the mean occur more frequently than values that are distant from the mean.

Standard Deviation

An indicator of the spread or distribution of a group of numbers, showing the degree to which these numbers vary from the average.