Multiple Choice
Automobiles are now safer and get better gasoline mileage. If there is an increase in the price of automobiles, which of the following is true?
A) All of the price increase reflects the improvement in the quality of the product rather than inflation.
B) A portion of the price increase reflects the improvement in the quality of the product rather than inflation.
C) All of the price increase reflects inflation rather than the improvement in the quality of the product.
D) There will be no effect on inflation.
Correct Answer:
Verified
Correct Answer:
Verified
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