Which of the Following Statements About Inflation Is True

Multiple Choice

Which of the following statements about inflation is true?

A) The most common measure of inflation is the consumer price index (CPI) .
B) Since 1980, inflation in the United States has risen dramatically.
C) High inflation is good for interest rates and stock and bond prices.
D) Inflation has no effect on what we earn in our jobs.
E) High rates of inflation tend to drive down the cost of borrowing money.