With Respect to Inflation and Deflation, Which Is Correct

Multiple Choice

With respect to inflation and deflation, which is correct?

A) Inflation is caused when consumers buy too many luxury goods.
B) When inflation occurs, people have more money to spend, and there will be an increased quantity of goods for sale.
C) When inflation occurs, purchasing power decreases.
D) Deflation is evident when the amount of money injected into the economic system increases faster than actual output.
E) All of these statements are correct.