Which of the Following Statements About Inflation Is True

Multiple Choice

Which of the following statements about inflation is true?

A) Inflation increases the purchasing power of consumer dollars.
B) Inflation occurs when people have more money to spend as the quantity of goods available increases.
C) Inflation occurs when the amount of money taken out of the economy exceeds the amount of money put into the economy.
D) Inflation and deflation are almost synonymous in practice.
E) None of these.