Inflation

In a country that has a low rate of inflation is that a good economy or a bad economy?

• Good economy

• Bad economy

What is one of the MAIN types of inflation?

• Core inflation

• Galloping inflation

• Wage inflation

• Asset inflation

An increase in the general price level of all goods and services in the economy- everything we buy and consume is the definition of?

• purchase price inflation

• Buyer price inflation

• Customer price inflation

• Consumer price inflation

The _______ is the average price of all goods and services sold in the economy calculated over a given period of time.

• General Price Level

• Consumer Price level

• Price level

• Average price level

What is CPI?

• Consumer price index

• Costumer pay index

• Consumer price Income

• Costumer pay income

In an economy of fiat money, which is an economy where the currency;

• is controlled by the Federal Reserve

• is worth less

• is worth more

• is controlled by a central bank

Who dictates the money supply?

• The Federal Bank

• The Federal Reserve

• The Federal Government

• The Legislative Branch

What is the Federal Reserve's primary goal?

• To keep inflation at a low and steady rate.

• To have full employment.

• Economic growth.

• Economic Freedom.

If the rate of inflation rises above their target level what does the Federal Reserve do?

• Increasing bond prices

• They put more money into circulation

• Decreases interest rates

• They take excess money out of circulation

If the general price level increases by the way of an excess in the money supply what happens?

• Consumer purchasing power decreases

• Consumer purchasing power increases

• Customer power increases

• Purchasing power increases