Inflation and CCI questions with correct answers|100% verified
Inflation and CCI questions with correct answers The main result of inflation is increasing consumer demand. reducing the purchasing power of the dollar. pushing most prices down. making everyday products unaffordable. Answer reducing the purchasing power of the dollar. Which of the following is a true statement regarding inflation: It is always caused by consumer demand. It is a general trend in which some prices may go down. It does not affect everyone in the economy. It harms businesses and the economy. Answer It is a general trend in which some prices may go down. "Too much cash chasing too few goods" is a description of cost-push inflation. demand-pull inflation. hyperinflation. deflation. Answer demand-pull inflation. Limited commodities can cause inflation targeting. demand-pull inflation. cost-push inflation. price stability. Answer cost-push inflation. The U.S. government aims to keep inflation at two percent. This is called inflation targeting. deflation. price stability. hyperinflation. Answer inflation targeting. Which of the following is a benefit of low, controlled inflation: The reduced purchasing power of the dollar The government's ability to adjust interest rates The strength of labor unions The scarcity of certain commodities Answer The government's ability to adjust interest rates
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