Inflation Exists Whenever

question 149

Multiple Choice

Inflation exists whenever:

• A)the price of a good increases.
• B)the price of a good decreases.
• C)the economy experiences a contraction.
• D)the overall price level is rising.
• E)the overall price level is falling.

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Definitions:

Forbidden

Something that is not allowed or is prohibited.

Present Value

The assessed current worth of a future money amount or cash flow series, using an established rate of return.

Interest Rate

The cost of borrowing money, often expressed as a percentage of the amount lent.

Usury Law

refers to regulations governing the amount of interest that can be charged on a loan, intended to protect borrowers from excessively high rates.