What are the main causes of inflation?
Inflation Quiz

Quiz
•
Business
•
11th Grade
•
Easy
Denise Fagan
Used 8+ times
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Increase in money demand, demand-pull deflation, cost-push deflation, and deflation expectations.
Increase in money supply, demand-pull inflation, cost-push inflation, and inflation expectations.
Decrease in money supply, deflation expectations, demand-pull deflation, and cost-push deflation.
Decrease in money demand, demand-pull deflation, cost-push deflation, and deflation expectations.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is demand-pull inflation?
Demand-pull inflation is when the demand for goods and services exceeds the supply, causing prices to rise.
Demand-pull inflation is when the supply of goods and services exceeds the demand, causing prices to rise.
Demand-pull inflation is when the demand for goods and services decreases, causing prices to rise.
Demand-pull inflation is when the government increases taxes, causing prices to rise.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is cost-push inflation?
Inflation caused by changes in monetary policy.
Inflation caused by a decrease in production costs.
Inflation caused by an increase in production costs.
Inflation caused by changes in consumer spending.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does inflation affect the purchasing power of money?
It decreases the purchasing power of money.
It increases the purchasing power of money.
It has no effect on the purchasing power of money.
It fluctuates the purchasing power of money.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What are the negative effects of high inflation on an economy?
Stimulating economic growth, increasing employment opportunities, and boosting consumer spending.
Eroding purchasing power, reducing consumer and investor confidence, distorting price signals, increasing uncertainty, and creating income inequality.
Encouraging investment, promoting innovation, and fostering economic development.
Stabilizing prices, reducing income inequality, and improving financial stability.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does inflation impact interest rates?
Inflation has no impact on interest rates.
Inflation causes interest rates to decrease.
Inflation causes interest rates to remain constant.
Inflation causes interest rates to rise.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the role of the central bank in controlling inflation?
The central bank controls inflation through monetary policy measures.
The central bank controls inflation through supply and demand.
The central bank controls inflation through fiscal policy measures.
The central bank has no role in controlling inflation.
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