Inflation

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Inflation -

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A. causes the purchasing power of a dollar to rise.

B. generally benefits the poor at the expense of the rich.

C. is measured by changes in the cost of a typical market basket of goods between time periods.

D. almost always benefits creditors at the expense of debtors.

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Explanations

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A. B. C. D.

Inflation can be measured by using price indexes. In general, these indexes are constructed by calculating the difference between the price of a basket of consumer goods in earlier and later years and dividing by the price of the basket in the first year.

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