Which of the following statements is NOT true about inflation?
A. During an inflationary period, the prices of all goods will increase.
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. Inflation is a sustained increase in the average prices of goods in the economy.
Answer: A
You might also like to view...
Refer to Scenario 11.1. Suppose Mariana purchases the needed land from Abe, Ben, Cat, and Don for the value she calculated the land to be worth, but Eva refuses to sell the land for the same price as the other 4 ranchers
What is the maximum amount Mariana would be willing to pay Eva for her land and still be willing to build the railway? A) $400,000 B) $1 million C) $1.4 million D) $3 million
Table 5-1B Number of coconuts 0 1 2 3 4 Robinson’s marginal utility C $2.00 $1.88 $1.60 $1.30 If a graph of Robinson’s marginal utility were constructed from Table 5-1B, it would
A. illustrate the “law” of diminishing marginal utility. B. be a negatively sloped curve. C. illustrate a typical consumer’s satisfaction derived from consumption of consecutive units of a good. D. All of the responses are correct.
The absolute value of the price elasticity of demand for telescopes is 1.5. Therefore, telescopes can be classified as a luxury
Indicate whether the statement is true or false
The European Union antitrust law focuses on which of the following?
A) furthering the social interest B) consumer welfare C) the means to monopolize a market D) ethics