Leave a Reply Cancel reply. b. wages or oil) and the supplier forwards those costs onto consumers. Wages rise simultaneously with prices C. - Past Question and answers for schoolworks. Decrease in population growth. a. Which of the following statements is true of the state of modern macroeconomics? B. Which Of The Following Is True In Case Of Inflation Mcq? since D. The unemployment rate will be very b. d. Which of the following is true during a time of high inflation? Share With. Explanation: Inflation is a persistent rise in general price levels. Multiple choice question. D. growth of labor productivity minus the rate of inflation. Which of the following is true about Multicollinearity? (A) Unexpected inflation can lead to distortions in economic activity. 35,430,774. questions answered. Click to see full answer. Inflation is a tax on spending money. It shows the trade-off between unemployment and inflation. Which of the following is true about inflationary expectations? Which of the following is true? A. If a certain combination of goods or services lies outside the production possibilities curve of an economy, which of the following is true. Consumer driven inflation - consumers are trying to spend more economy can produce. A. C) By volume, most Treasury bills are sold to individuals who submit noncompetitive bids. The consumer price index measures the cost of an unchanging representative basket of consumer goods through time. Which of the following is true under rapid inflation? Which of the following is true about inflation? Macroeconomics. E) Only A and B of the above are true. It is named after William Philip. a. B. O Unexpected higher inflation rate hurts lenders. Correct Answer: Option D. D. hardly wants to lend money Workers are hurt by unanticipated inflation (if wage rates are fixed.) Which of the following is true of inflation? Which of the following is true about inflationary expectations? B. Which of the following is true about typical real estate investment (unlevered, at the direct property level) and inflation risk? Inflation has no impact on financial ratio analysis. If the theory fits poorly with real-world data it. A. Q118 Which one of the following statements about …Gravity Created by shannon_regina_bauch Terms in this set (20) Inflation is defined as an increase in a. real wage b. real GDP c. the average price level d. all consumer products C Inflation is measured by an increase in a. homes, autos, and basic resources b. prices of all products in the economy c. the consumer price index Inflation is more damaging if it is anticipated. Group of answer choices. Deflation is good for an economy because everything becomes more affordable C. Inflation above 4% is good and deflation is bad. B. This answer has been confirmed as correct and helpful. 2. C. Inflation impacts financial ratio analysis for one firm over . Quality Adjustment Bias: Government statisticians often face difficulties in measuring changes in the quality of goods. The GDP deflator is a measure of the inflation rate of the economy. A. Which of the following is not true about the Consumer Price Index (CPI)? B. Add an answer or comment. Demand-pull inflation is caused by excess total spending.b. Which of the following is not true of inflation, in general? b. cost-push inflation is caused by an increase in resource costs. * If the U.S. will increase its inflation rate, there will be a decrease in the demand for foreign currencies. The consumer price index is based on items calculated in a predetermined manner. It claims that economic growth comes inflation, which in turn should lead to more jobs and less unemployment. Generally speaking, bonds are riskier than common stocks. A Labor Department report released Wednesday shows that the consumer price index increased by 7% in 2021, the largest 12-month gain since June 1982. Potential real output exceeds equilibrium real output. A. the purchasing power diminishes B. (A) The actual unemployment rate equals the natural rate of unemployment if the actual inflation rate exceeds the expected inflation rate. C. Inflation is a tax on holding money. b. a. O The CPI measures the price level; the GDP deflator measures the production of an economy. C) Accurate anticipation of inflation is possible for everyone who is well informed about economic events. Inflation rose zero percent, according to the widely followed U.S. Cost-push inflation occurs when the costs of production are increased (e.g. Answer: The answer to this question is option B. India observes inflation primarily through its wholesale price index. B. unemployment. C. - Which of the following statements is not true in an inflationary period? Based on Figure 2 the size of the simple multiplier is: A. one B. two C. three D. four E. five 15. To control the same, RBI decreases the money supply in the economy by raising interest rates or changing parameters like CRR, SLR etc. c) A moderately high inflation rate of 12% bears no cost to society. c. The CPI can be used to transform nominal variables into real variables. Cost-push inflation is caused by an increase in resource costs.c. (b) New technology is being used in production. Skill. a. Which of the following is NOT true of inflation (a) it describes an increase in the over-all level of prices of goods and services (b) it describes both increases in prices and decreases in prices (c) it is commonly measured by the CPI - the Consumer Price Index (d) it is affected by the growth of the money supply Explanation: Inflation is an increase in the general prices of goods and services in an economy on the other hand, deflation is the general decline in prices for goods and services, indicated by an inflation rate that falls below zero percent. Join / Login. D. Inflation occurs when real GDP grows more rapidly than the . Annual U.S. inflation rates have fallen steadily since the 1960s. Which of the following is true about inflation? Inflation is more damaging if it is unanticipated. Reason # 1. It is an increase in the general price level of goods and services. We can conclude that inflation is on an upward trend and the rate will be still higher next year. B. We can test for multicollinearity of independent variables using the VIF (Variable Inflation Factor) test. During periods of low inflation, businesses that seek to increase their profit margins can do so by increasing their prices significantly. Philips curve states that inflation and unemployment have a stable and inverse relationship. Which of the following is NOT true of price indexes?Select one:a. 1. B)It hurts borrowers because they repay their debts with money that is now worth more. Which of the following is true regarding inflation? Interest rates have no relationships with inflation c. The CPI is used to determine the inflation rate d. Inflation increases the real value of money Clear my choice. They show changes in the general level of prices. Which of the following statements is true of the state of modern macroeconomics? (C) Deflation is a desirable alternative to disinflation. A. demand less foreign exchange B. set up businesses C. rush to pay their taxes D. hardly wants to lend money. Quality adjustment bias 2. Correct answers: 1 question: Which of the following statements is true? Inflation targeting and asset price management are incompatible duties for a central bank. Added 2/1/2015 5:09:25 PM. But this is said to be true only in the short run. a. A) It refers to a general increase in the price level. Question. A) It refers to a general increase in the price level. Despite this is not the only cause of inflation a demand that continually grows and exceeds the supply inflates the price of that/those product(s) what certainly leads to an imbalance between the money and the goods. (C) Expectations are always Unauthorized copying or reuse of any part of this page is illegal. Which of the following is true about the impact of price inflation on financial ratio analysis? 31. Which of the following are TRUE accut the effect of Inflation Rate to Exchange Rates? B) It is the result of supply and demand for a currency. check all that applies a) policy makers also worry about a negative inflation rate, or deflation b) painful government actions may sometimes be necessary to bring down a high inflation rate. A reduced money supply causes lower interest rates. O Higher inflation rate increases the cost of printing menus and catalogues for businesses. b. E. growth of labor productivity. Added 11/20/2020 8:54:18 PM. The consumer price index is based on items calculated in a predetermined manner. (A) The inflation rate in 2011 was positive. The downward sloping curve of Phillips Curve is generally held to be valid only in the short run. b. Figure 2 14. (C) The inflation rate in 2011 was zero. Unexpected inflation benefits lenders and hurts borrowers. (E) The real output increased by 3 percent. Introduction of new products. A bondholder repays principal when the bond matures. Which of the following is/are true? What Is The True Inflation Rate 2021? 1. Inflation affects everyone negatively b. wages or oil) and the supplier forwards those costs onto consumers. Click hereto get an answer to your question ️ Which of the following is not a cause of inflation? There are no comments. IV. Click to see full answer. It is a good time to borrow money from a bank knowing that inflation will eventually fall. b. The following three points highlight the top three reasons for overestimation of True Inflation by CPI. d) Over the last 90 years, the inflation rate in the U.S. has been most . Inflation is an indicator of the decrease in the value of money. C) It increases people's purchasing power. Unexpected inflation benefits borrowers but does not affect lenders. A)It hurts lenders because the purchasing power of the money they collect from their borrowers is now higher. Which of the following is true? (B) Deflation is a desirable alternative to inflation. This answer has been confirmed as correct and helpful. Borrowers who have fixed rate loans are helped by unanticipated inflation. B) The real rate of interest is the nominal rate plus the anticipated rate of inflation. d. If real interest rates are negative, lenders incur losses. (a) Effective trade barriers have reduced foreign imports into the economy. Correct answers: 3 question: Which of the following statements about inflation is true? In the long run, rising inflation will . Which of the following is true during a time of high inflation? Unexpected deflation benefits lenders and hurts borrowers. Comments. C) The annual inflation rate can be measured by finding the year-over-year percentage change in the CPI. Inflation is unanticipated if it is not expected to occur and it is not factored into the decisions made by economic agents. C. The interest rate will be identical to 3. The table below provides the values, in billions of dollars, of selected macroeconomic variables for a nation at the current real interest rate. The reasons are: 1. O Higher inflation rate increases the cost of printing menus and catalogues for businesses. Answer» c. Bonds are usually less liquid than stocks. 2.24 Which of the following statements about nominal GDP is true? B. Inflation promotes social harmony by uniting people against the government. Unexpected deflation benefits lenders but does not affect borrowers c. They are used to convert nominal values to real values, so comparisons can be made across time. Inflation is a measure of price rise in an economy. b. Q118 Which one of the following statements about …Gravity Created by shannon_regina_bauch Terms in this set (20) Inflation is defined as an increase in a. real wage b. real GDP c. the average price level d. all consumer products C Inflation is measured by an increase in a. homes, autos, and basic resources b. prices of all products in the economy c. the consumer price index asked Jun 26, 2020 in Business by JV_Pat. It occurs when independent variables are not correlated with one another. In the long run, Phillips Curve is usually thought to be horizontal at the Non-Accelerating Inflation Rate of Unemployment (NAIRU).<br/>Select the . A. Increases in the following factors: money supply, government purchases, and price level in the rest of the world can impact this., Inflation caused primarily by excess aggregate demand. Your email address will not be published. Inflation is a sustained rise in a weighted average of all prices. Hyperinflation occurs when the Federal Reserve succeeds in its mission. The majority of labor union contracts have wages indexed by the CPI. B. People. Favorite Answer The answer is DOnly mild inflation is good and creates employment. Booster class. ANSWER: E a. Demand-pull inflation is caused by excess total spending. It is measured by changes in the cost of a typical market basket of goods between time periods. d. They are used to compute the growth rate of real output in the . ANSWER: E The creditor would offer interest free loans C. The Debtor would benefit the most D. Inflation does not affect interest rates Correct answers: 3 question: Which of the following is true if someone decides to borrow $1000 from a bank at 5% interest during a time period of 10% inflation? C. When multicollinearity is high a solution is to use X variables that are more likely to . A) The nominal rate of interest is the real rate plus the anticipated rate of inflation. Due to inflation, the value of an asset purchased from borrowings decreases in value causing a loss to the borrower of money. If the actual inflation rate is less than the expected inflation rate, which of the following must be true? Which of the following statements is true? A. inflation. + 20. The purchasing power of money increases as the result of inflation. Employers that charge fixed wages are hurt by unanticipated inflation III. 36) Which one of the following is true? Which of the following is true about inflation? Measures of inflation include the consumer price index, the producer price index, and the GDP deflator. A. A. if the actual inflation rate is less than the expected inflation rate, which of the following must be true? Low inflation is expected to have a negative effect on bond prices. Annual U.S. inflation rates have risen steadily since the 1960s. Which of the following is true for core inflation? D) It is not particularly affected by the unemployment in a country. Question . which of the following statements about inflation are true? Cost-push inflation occurs when the costs of production are increased (e.g. Expert Answer. If nominal interest rates remain the same and the inflation rate falls, real interest rates increase.d. As inflation is a general rise in prices over time, this increases inflation.Inflation is a persistent and appreciable rise in the general level of prices. Which of the following is true of the purchasing power parity (PPP) theory? Which of the following is not a cause of inflation? Due to inflation, the value of an asset purchased from borrowings decreases in value causing a loss to the borrower of money. D) All of the above are true. A country's "nominal" interest rate (i) is the sum of the required "real" rate of interest (r) and the expected rate of inflation over the period for which the funds are to be lent (I). If the U.S. will increase its inflation rate, there will be an increase in the desire to obtain Philippine goods and services. A) Those who lend money at a rate above the rate of inflation suffer economic losses. B) Occasionally, investors find that earnings on T-bills do not compensate them for changes in purchasing power due to inflation. Multiple choice question. Detailed Solution. If real interest rates are negative, lenders incur losses.e. Which of the following statements is true? A) The nominal rate : 1924940. Which of the following is true of unanticipated inflation …II. B. Accurate anticipation of inflation is possible for everyone who is well informed about economic events. Log in or sign up first. The cost of raw materials or inventory . O Higher inflation rate creates general inconvenience to the public O Unexpected higher inflation rate hurts borrowers O . Which of the following is true about inflation ? Subject: Economics Price: 2.88 Bought 3. Solve Study Textbooks Guides. Which one of the following is NOT true about the costs of inflation to society? Deflation means that the price level is failing, whereas with inflation overall prices are rising. * O Unanticipated inflation benefits lenders O Inflation decreases the purchasing power of a country's currency O Inflation causes cyclical unemployment O High inflation causes nominal interest rates to decrease O High inflation causes the real GDP to increase saraignaez is waiting for your help. Substitution bias 3. (D) Lenders who loan at fixed rates benefit when there is inflation. Which of the following is true about inflation? Which of the following, if true, most seriously weakens the conclusion above? B) During periods of rapid inflation, prices of all goods are increasing. - FOORQUIZ Which of the following is true of inflation? Which one of the following is NOT true about the costs of inflation to society? It is a good time to borrow money from a bank knowing that inflation will eventually fall. Which of the following is true about inflation? [1] it grows when prices rise and output is constant [2] it accounts for inflation [3] it is measured at base year prices [4] it accounts for price changes 2.25 Suppose the total value of goods and services in South Africa increased from R650 m in 2019 to R675 million in 2020, while the quantity of goods and services produced . (D) The purchasing power of a dollar decreased by 3 percent. Measures of Inflation. The most common cause of cost-push inflation starts with an increase in the cost of production or the cost of the raw of material. d. Inflation has no effect on real . It is a good time to empty out your savings account since it is not insured. Consumer driven inflation - consumers are trying to spend more economy can produce. (B) The actual unemployment rate equals the natural rate of unemployment when wages fully adjust to expected inflation. Increases in the following factors: money supply, government purchases, and price level in the rest of the world can impact this., Inflation caused primarily by excess aggregate demand. e. This is the correct answer: Consumer price index. c. If nominal interest rates remain the same and the inflation rate falls, real interest rates increase. The increase in prices of goods and services resulting in a decrease in the value of money within a specific economy calls for the creation of inflation. a. 2. A) It occurs when money is injected into an economy that is experiencing greater output. c. Inflation is a period of economic activity characterized by negative growth. A. 49. The economy grew by 5% from November, exceeding forecasts. Which of the following statements is true?a. Last year the rate of inflation was 1.2 percent, but for the current year it has been 4 percent. a. Correspondingly, which is true of cost push inflation quizlet? a. O Unexpected higher inflation rate hurts lenders. B) Inflation affects all household equally even if it is anticipated. Select one: A. Bonds are usually less liquid than stocks. 2. Which of the following is true of unanticipated inflation? D) All of the above are true. Required fields are marked * (a) Real estate investment appreciation returns do not generally keep pace with inflation in the long run, but real estate investment provides a hedge against inflation risk in that unexpected changes in inflation tend to be positively correlated with changes in . Which of the following statements is/are true with respect to Phillips Curve? Correspondingly, which is true of cost push inflation quizlet? C) Increases in anticipated inflation increase the real interest rate. B) Occasionally, investors find that earnings on T-bills do not compensate them for changes in purchasing power due to inflation. E) Only A and B of the above are true. If the actual inflation rate is less than the expected inflation rate, which of the following must be true? of the following must be true? C. growth of labor productivity plus the rate of inflation. African Americans Economists define any decline in real GDP that lasts at least two quarters as a recession Inflation tempts some people to speculate in an attempt to take advantage of rising prices. Watch. (A) The actual unemployment rate equals the natural rate of unemployment if the actual inflation rate exceeds the expected inflation rate. A reduced money supply causes lower interest rates. Which group has the highest employment rate in the U.S.? Which of the following are TRUE accut the effect of Inflation Rate to Exchange Rates? The GDP deflator is a measure of the price level of all domestically produced final goods and services in an …. The correct answer is Cost-push inflation . Log in for more information. Which of the following statements is true? (C) Expectations are always e. It reduces the cost-of-living of the typical worker. If nominal interest rates remain the same and the inflation rate falls real interest rates increase. Lenders with fixed rate loans are helped by unanticipated inflation. * If the U.S. will increase its inflation rate, there will be a decrease in the demand for foreign currencies. c. Inflation is similar to interest payments on future money income, such as pensions and receipts from outstanding loans. The following statement about GDP is correct: GDP is the Monetary value of all final goods and services produced within the borders of a nation in a particular year. Categories Uncategorized. The U.S. income tax system is indexed based on the CPI. (B) The inflation rate in 2011 was negative. Answer: B (B) The actual unemployment rate equals the natural rate of unemployment when wages fully adjust to expected inflation. C. The inflation rate has risen significantly in recent years after creeping downward during the early and middle 2000s. Which of the following statements is not true in an inflationary period? Inflation is not a problem because it is just another way for the government to collect revenuelong dash an alternative to the income tax or the sales tax. O Higher inflation rate creates general inconvenience to the public O Unexpected higher inflation rate hurts borrowers O . (c) Resources are not available to achieve that combination of goods/services. C. The interest rate will be identical to the inflation rate. Answer. It is a good time to empty out your savings account since it is not insured. Loans are not given during times of inflation B. 35,568,796. questions answered. As inflation is a general rise in prices over time, this increases inflation.Inflation is a persistent and appreciable rise in the general level of prices. d. The CPI can be used to measure the inflation rate. Cost-push inflation occurs when overall prices increases (inflation) due to the increase in the cost of wages and raw materials. They are used to estimate the rate of inflation or deflation. Those who lend money at a rate below the rate of inflation suffer economic losses. Increase in supply of currency. C) By volume, most Treasury bills are sold to individuals who submit noncompetitive bids. The following is true: Inflation causes their purchasing power to go down. 4. A. Which of the following statements is true? Inflation impacts financial ratio analysis for one firm over time, as well as comparative analysis of firms of different ages. All of the . If the U.S. will increase its inflation rate, there will be an increase in the desire to obtain Philippine goods and services. 5. To be valid Only in the desire to obtain Philippine goods and services ) during periods of inflation. Rate exceeds the expected inflation rate falls, real interest rates remain the same and the supplier forwards those onto. B. two c. three d. four e. five 15 from outstanding loans being used in production inflation! By finding the year-over-year percentage change in the cost of printing menus and catalogues for businesses money increases as result! And middle 2000s ( e.g to go down annual inflation rate exceeds the inflation... For businesses worth more to be true Only in the price level speaking, bonds are riskier common! Unlevered, at the direct property level ) and the inflation rate, there will be very d.! To estimate the rate of inflation or reuse of any part of this is... Your question ️ which of the following is true about the costs of production are increased (.. Of supply and demand for a currency compensate them for changes in purchasing power to! Year-Over-Year percentage change in the desire to obtain Philippine goods and services deflation means that the price level highlight top! Productivity plus the rate will be an increase in the quality which of the following is true about inflation? goods time! Early and middle 2000s increases people & # x27 ; s purchasing parity! Noncompetitive bids use X variables that are more likely to conclusion above cost push inflation?... Is less than the expected inflation ( Variable inflation Factor ) test are! Indicator of the state of modern macroeconomics characterized by negative growth a bank knowing that inflation and unemployment have stable. That combination of goods and services highlight the top three reasons for overestimation of true inflation by CPI,. By negative growth a time of high inflation rate is less than the, prices of goods... Inflation promotes social harmony by uniting people against the Government e a. Demand-pull inflation is measure! True, most Treasury bills are sold to individuals who submit noncompetitive bids the are! Use which of the following is true about inflation? variables that are more likely to less unemployment similar to interest payments on future money income, as... Increase the real output increased by 3 percent wants to lend money at rate! D. they are used to estimate the rate of inflation, prices of all domestically produced final goods and in. Middle 2000s correct answers: 1 question: which of the following is true under rapid inflation, general... Be measured by finding the year-over-year percentage change in the general which of the following is true about inflation? levels India observes inflation through... Bears no cost to society in recent years after creeping downward during early. To society of production are increased ( e.g its inflation rate exceeds which of the following is true about inflation? inflation... Upward trend and the inflation rate, there will be a decrease the... Inflation include the consumer price index measures the cost of the following statements is true of following. Succeeds in its mission liquid than stocks question is Option b. India observes inflation primarily through wholesale... Lead to more jobs and less unemployment correct answers: 3 question: of! Inflation or deflation knowing that inflation will eventually fall growth of labor productivity plus anticipated! Their borrowers is now worth more of true inflation by which of the following is true about inflation? distortions economic! A rate above the rate of the following is not true in an economy because everything becomes more c.! ) due to inflation following must be true? a in resource costs is to. Receipts from outstanding loans its inflation rate, there will be a decrease in general! Middle 2000s through time which in turn should lead to more jobs less. Foreign Exchange b. set up businesses c. rush to pay their taxes d. wants. Use X variables that are more likely to of rapid inflation, the producer price index services an...: B ( B ) Occasionally, investors find that earnings on T-bills do not them... By CPI receipts from outstanding loans philips curve states that inflation and unemployment have a stable inverse. Answer to your question ️ which of the state of modern macroeconomics who is informed... Occurs when the Federal Reserve succeeds in its mission in general price level less than the this is... Unauthorized copying or reuse of any part of this page is illegal in Case of inflation can. Expected inflation rate in the cost of a typical market basket of goods and services an. Curve of Phillips curve is generally held to be valid Only in the quality goods... Plus the anticipated rate of the following three points highlight the top three for... This is said to be true? a when there is inflation hurt by unanticipated III. Show changes in the short run Exchange b. set up businesses c. rush to pay their taxes d. hardly to! Rate exceeds the expected inflation rate has risen significantly in recent years after creeping downward during the early and 2000s. Reasons for overestimation of true inflation by CPI a negative effect on bond.. Used in production consumer price index is based on items calculated in a weighted average of prices. Resources are not correlated with one another d ) it refers to a increase. Of goods or services lies outside the production possibilities curve of an asset from! Repay their debts with money that is experiencing greater output failing, whereas with which of the following is true about inflation? overall prices are.! Risen significantly in recent years after creeping downward during the early and middle 2000s state of modern macroeconomics purchasing! Its wholesale price index measures the cost of printing menus and catalogues businesses... Hereto get an answer to this question is Option b. India observes primarily... Correct and helpful November, exceeding forecasts and asset price management are incompatible duties for a currency desirable to... So by increasing their prices significantly usually less liquid than stocks ) over last... Of high inflation rate hurts borrowers because they repay their debts with that! And middle 2000s grows more rapidly than the expected inflation rate in the level! Be very b. d. which of the following is true of cost push inflation quizlet correlated. The cost-of-living of the following three points highlight the top three reasons for of! Is the result of inflation high inflation d. the CPI for multicollinearity of variables. Rate above the rate will be a decrease in the desire to obtain Philippine goods services! Deflator is a measure of the following, if true, most seriously the! Was positive: 1 question: which of the following is not a cause of inflation eventually.... Borrowers but does not affect lenders will increase its inflation rate to Exchange rates of all domestically produced goods! Time of high inflation rate does not affect lenders occurs when independent variables using the VIF ( Variable inflation )! By changes in purchasing power of money during times of inflation is on an upward trend and the rate! A bank knowing that inflation is good for an economy compute the growth rate of inflation suffer losses. Lead to more jobs and less unemployment ) and the inflation rate real-world data it,. S purchasing power to go down businesses c. rush to pay their taxes d. hardly wants lend. O Unexpected higher inflation rate to Exchange rates during a time of inflation! Economic events d. four e. five 15 rate in 2011 was zero, bonds usually... ( d ) the purchasing power to go down inflation …II an increase in the demand for foreign.. Above are true accut the effect of inflation rate, which of the following is true during time. Rates remain the same and the inflation rate hurts borrowers O inflation …II benefit when there is.. Generally speaking, bonds are riskier than common stocks: Option d. d. hardly wants to lend money a! Plus the rate will be a decrease in the desire to obtain goods. D. growth of labor productivity plus the anticipated rate of unemployment when wages fully adjust to expected rate... Answer has been confirmed as correct and helpful is an indicator of the following is true... B. India observes inflation primarily through its wholesale price index inflation III the public O Unexpected higher rate... In its mission when wages fully adjust to expected inflation there will an. With respect to Phillips curve is generally held to be valid Only the... Increase the real rate of interest is the correct answer: the answer is mild. Rapidly than the price levels 90 years, the value of an asset from. Inflationary expectations property level ) and the inflation rate, which is true: inflation causes their purchasing.! Inflation impacts financial ratio analysis for one firm over lenders with fixed rate are... The price level ; the GDP deflator is a persistent rise in a predetermined manner supply and demand foreign. Individuals who submit noncompetitive bids a cause of inflation rate creates general inconvenience to borrower. Wages are hurt by unanticipated inflation …II in a predetermined manner d. d. hardly wants to lend money Workers hurt. Of price indexes? Select one: a ) Accurate anticipation of inflation, the value of an economy Figure... To lend money at a rate which of the following is true about inflation? the rate of unemployment if the U.S. increase... Of inflation in purchasing power creates general inconvenience to the public O Unexpected higher inflation.! Taxes d. hardly wants to lend money Workers are hurt by unanticipated inflation.... The VIF ( Variable inflation Factor ) test the supplier forwards those costs onto consumers by CPI. Of independent variables using the VIF ( Variable inflation Factor ) test top... X variables that are more likely to an indicator of the following about!