If a Nation Experienced an Inflation Rate of About 12

Multiple Choice

If a nation experienced an inflation rate of about 12 percent and then, 5 years later, had an inflation rate of about 15 percent, which of the following statements best describes what was happening to purchasing power during that period?

A) The purchasing power of businesses did not see a change throughout the period, but consumers did.
B) The average consumer's purchasing power was lower at the beginning of period than at the end.
C) The country was experiencing a recession, prices were universally high throughout the period, and purchasing power declined for everyone.
D) The average consumer's purchasing power was higher at the beginning of the period than at the end.