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In Nation A,the Price Index Rises from 110 to 120

Question 134

Multiple Choice

In Nation A,the price index rises from 110 to 120 in a particular year.In the same year,the price level rises from 120 to 130 in Nation B.This means:


A) inflation in both nations is 10%.
B) Nation B suffers from hyperinflation.
C) both nations suffer from hyperinflation.
D) Nation A is experiencing inflation but Nation B is experiencing deflation.
E) Nation A is experiencing inflation of less than 9.1% and Nation B is experiencing inflation of less than 8.4%.

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