inflation

Who is most likely to be hurt by inflation?

• someone who borrowed money
• a retiree on a fixed income
• a business owner
• the U.S. government

When inflation is high the _______________of the dollar decreases

• cost value
• purchasing power
• importance
• validity

Which of the following groups suffer from high inflation

• Borrowers
• Lenders
• Taxpayers
• Property Investors

What is inflation?

• rise in all prices
• rise in most prices
• rise in some prices
• rise in general prices

An index that measures the prices of a market basket of goods that typical consumers purchase.

• Consumer Price Index
• Federal Reserve
• Bank
• Deflation

__________ refers to a decrease in price level.

• Hyperinflation

• Disinflaation

• Deflation

• Stagflation

To calculate the future cost of a product or service due to inflation, people need to know everything except the

• inflation rate

• current cost of the product or service

• type of product or service

• future purchase date

The U.S. inflation rate is measured by the Consumer Price Index.

• True

• False

Everyone loses money when the U.S. inflation rate increases.

• True

• False

Unexpectedly high inflation ________ savers and _________ borrowers

• hurts;hurts

• hurts;helps

• helps;helps

• helps;hurts

• hurts;doesn't affect