
Understanding Inflation
Interactive Video
•
Business
•
9th - 10th Grade
•
Hard
Jennifer Brown
FREE Resource
5 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the primary reason inflation is considered a necessary part of a functioning economy?
It prevents economic recessions.
It encourages spending and investment.
It helps maintain the value of currency.
It ensures that goods remain affordable.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a primary cause of inflation?
Decrease in production costs
Decrease in consumer demand
Increase in the supply of money
Reduction in government spending
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the demand-pull effect in the context of inflation?
An increase in demand without a corresponding increase in supply
A decrease in demand causing prices to drop
An increase in supply leading to lower prices
A decrease in money supply leading to higher prices
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How can central banks influence inflation?
By increasing taxes
By adjusting interest rates
By reducing government debt
By printing more money
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is hyperinflation?
A decrease in the inflation rate
A slight increase in inflation rate
A controlled increase in prices
A rapid devaluation of currency
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