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,five years later,had an inflation rate of about 5 percent,which of the following statements best describes what was happening to purchasing power during the 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.