Which of the Following Is a Reason the Inflation Rate

question 48

Multiple Choice

Which of the following is a reason the inflation rate has stayed at or below 3 percent every year since 1992?

• A)The accelerating pace of technological advance
• B)The advent of E-commerce,which has added a new layer of competition
• C)The rise of huge discounters,such as Wal-Mart and Staples
• D)The rising tide of imported goods
• E)All of the choices are correct

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Definitions:

Double Coincidence of Wants

A situation in barter economies where two parties each hold an item the other wants, allowing for a direct exchange.

Medium of Exchange

An instrument or system used to facilitate the sale, purchase, or trade of goods between parties.

Welfare Banks

Financial institutions or programs designed to support low-income individuals or families, offering services like microloans or savings accounts with beneficial terms.

Financial Services

Economic services provided by the finance industry, including banking, insurance, investment management, and securities trading.