When Inflation Increases Over the Long Run (Several Years)

question 67

Multiple Choice

When inflation increases over the long run (several years) ,

• A)consumption will increase at a faster rate in real dollars.
• B)interest rates will move up with inflation.
• C)real GDP growth will stabilize at the rate of inflation plus 3% real growth.
• D)the dollar will usually rise relative to currencies of countries where inflation is growing at a slower rate.

---

Definitions:

Sociologists

Social scientists who study human societies, their interactions, and the processes that preserve and change them, focusing on structures, systems, and dynamics of social life.

Ethnic Groups

Groups of people who share common cultural attributes, ancestry, language, or religious practices that distinguish them from other groups.

Money-Making Machine

An entity or activity that consistently generates a considerable amount of profit with minimal effort over time.

Corporate City

A concept wherein a city is influenced or dominated by corporate interests, often leading to the prioritization of business and economic development over other civic considerations.