Which of the Following Statements Is NOT True About Inflation

question 252

Multiple Choice

Which of the following statements is NOT true about inflation?

• A) Inflation is a sustained increase in the average prices of goods in the economy.
• B) During an inflationary period, the prices of some goods will increase while the price of some goods will decrease.
• C) When there is inflation, the purchasing power of a dollar decreases.
• D) During an inflationary period, the prices of all goods will increase.

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Definitions:

Implied Warranty

a legal assumption that a product or service sold will meet certain quality and functionality standards even if not explicitly stated.

Merchantability

A guarantee that a product sold meets certain quality standards and is fit for the ordinary purposes for which such goods are used.

UCC

The Uniform Commercial Code represents a collection of statutes offering legal guidelines and regulations for commercial or business activities and transactions within the United States.

CISG

The treaty known as the United Nations Convention on Contracts for the International Sale of Goods sets a standardized law for international sales transactions.