Which of the following statements about inflation is true?
A)Inflation increases the purchasing power of consumer dollars.
B)Inflation occurs when people have more money to spend as the quantity of goods available increases.
C)Inflation occurs when the amount of money taken out of the economy exceeds the amount of money put into the economy.
D)Inflation and deflation are almost synonymous in practice.
E)None of these.

Question

Quizplus · Accepted Answer

None of the statements accurately describe inflation. Inflation decreases the purchasing power of money, occurs when demand outpaces supply, and is not synonymous with deflation.

Which of the Following Statements About Inflation Is True