Inflation in Vietnam Rose to 27 Percent in July 2008-

Multiple Choice

Inflation in Vietnam rose to 27 percent in July 2008- the highest inflation rate in Asia. ʺSqueezed on all sides, people are cutting back on food, limiting travel, looking for second jobs, delaying major purchases and waiting for the cost of a wedding to go down before marrying...Given this slowdown, Vietnam... is scaling back its plans for growth and economic development. Some are
Losing confidence in the ability of the government to manage the economy. And rumors of price increases have caused panic buying of fuel and rice.ʺ
The story provides an example of how inflation

A) redistributes income.
B) leads to increases in the consumer price index.
C) can lead to changes in the CPI market basket.
D) diverts resources from production.