Question

Which of these statements is true?

a.Inflation means our money has more purchasing power.
b.Inflation happens when there is not enough money.
c.Inflation is due to low production costs.
d.Inflation is problematic if unexpected.

Answer 1

option D

Step-by-step explanation:

correct answer is option D

In Inflation the purchasing power of the money decreases means we have to spend large amount of money to get the same article when our purchasing power is weak than to the stronger one which leads to increase the inflation.

If the production cost is low the good will be sold at the cheaper price hence the statement is false.

hence, the only option left is D inflation is problematic when it is unexpected.