What is a primary cause of inflation?
Understanding Inflation in the Financial Economy

Quiz
•
Financial Education
•
10th Grade
•
Hard
Luca Merwe
FREE Resource
13 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Decrease in the supply of goods and services
Increase in the supply of money
Decrease in the demand for goods and services
Increase in the production of goods
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is an effect of inflation on the economy?
Decreases the value of money
Increases the value of money
Stabilizes the stock market
Reduces unemployment to zero
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which strategy is NOT used to control inflation?
Increasing interest rates
Decreasing government spending
Printing more money
Increasing taxes
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is hyperinflation?
A moderate increase in prices over time
A decrease in the general price level of goods and services
An extremely rapid or out of control inflation
A stable price level in the economy
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What causes demand-pull inflation?
A decrease in production costs
An increase in demand for goods and services
A decrease in taxes
An increase in the supply of money
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does inflation affect interest rates?
Interest rates decrease
Interest rates increase
Interest rates remain unchanged
Interest rates are not related to inflation
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a cause of cost-push inflation?
A decrease in demand for goods and services
An increase in the money supply
An increase in the cost of raw materials
A decrease in taxes
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