1) What is the primary economic effect of inflation?  a) Decreased cost of living b) Increased purchasing power c) Economic growth acceleration d) Decline in the value of money 2) Which type of inflation occurs when prices rise due to increased costs in production inputs? a) Demand-pull inflation b) Built-in inflation c) Cost-push inflation d) Walking inflation 3) How is the Consumer Price Index (CPI) calculated? a) Average price change of selected individual products b) Percentage change in the price of a fixed basket of goods and services c) Monthly survey of consumer savings rates d) Annual variation in mortgage interest rates 4) What does the velocity of money measure in an economy? a) How fast money is printed by the government b) The rate of exchange between different currencies c) The speed at which money circulates for transactions d) The amount of money saved in banks 5) What type of inflation occurs when inflation exceeds 10%, often leading to economic instability and a loss of currency value? a) Creeping inflation b) Demand-pull inflation c) Galloping inflation d) Built-in inflation

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