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WorksheetsInflation vs Devaluation
Total questions: 25
Worksheet time: 25mins
Which of the following explains the relations between the average price of aggregate supply and the quantity demanded?
Aggregate demand
Price level
Producer price index
Consumer price index
Which of the following causes of inflation is often described as “too much money chasing too few goods”?
Demand-pull inflation
Cost-push inflation
Demand-push inflation
Cost-pull inflation
What is inflation?
Increase general price level of goods and services
Increase price level from one private organisation
Decrease general price level of goods
Increase general price level of services
Which type of inflation is correct?
Cost - pull inflation
Demand - push inflation
Cost - push inflation
All is correct
What is CPI?
Consumer price index
Costumer pay index
Consumer price Income
Costumer pay income
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
What is the most common cause of inflation?
Pull-demand inflation
Demand-pull inflation
Cost-push inflation
Push-cost inflation
A ___________ is a reduction in the value of a currency that is set under a fixed exchange rate regime.
Devaluation
Revaluation
Valuation
A ___________ is an increase in the value of a currency that is set under a fixed exchange rate regime.
Revaluation
Devaluation
Valuation
Devaluation is
Fall in the value of domestic currency in terms of foreign currency as a deliberate step adopted by the govt. under Fixed exchange rate system
Rise in the value of domestic currency in terms of foreign currency as a deliberate step adopted by the govt. under Fixed exchange rate system
Fall in the value of domestic currency in terms of foreign currency as a deliberate step adopted by the govt. under FLEXIBLE exchange rate system
___________ is the practice of limiting trade to protect domestic industries.
Protectionism
Tariffs
Import Quota
Foreign Exchange Controls
___________ are taxes on imports.
Tariffs
Import Quota
Protectionism
Foreign Exchange Controls
Inflation causes devaluation.
True
False
Devaluation can actually become a cause of inflation.
True
False
Inflation is the opposite of deflation.
True
False
Devaluation is different from depreciation.
False
True
