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EC:083 Final Exam Pre-Test.

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EC:083 Final Exam Pre-Test. The main result of inflation is a. pushing most prices down b. reducing the purchasing power of the dollar c. making everyday products unaffordable d. increasing consumer demand - CORRECT ANSWER reducing the purchasing power of the dollar Which of the following is a true statement regarding inflation: a. It is always caused by consumer demand b. It does not affect everyone in the economy c. It impacts only low-income consumers d. It is a general trend in which some prices may go down - CORRECT ANSWER It is a general trend in which some prices may go down "Too much cash chasing too few goods" is a description of a. hyperinflation b. cost-push inflation c. demand-pull inflation d. deflation - CORRECT ANSWER demand-pull inflation Limited commodities can cause a. inflation targeting b. demand-pull inflation c. cost-push inflation d. price stability - CORRECT ANSWER cost-push inflation

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