This quiz works best with JavaScript enabled. Home > Macroeconomics > Inflation > Inflation – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inflation Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. This spring, inflation in the U.S. reached a ..... A) 10-year low. B) 15-year low. C) 25-year high. D) 40-year high. Show Answer Correct Answer: D) 40-year high. 2. When you borrow $ from the bank, where does that $ come from? A) The account of the bank's customers. B) The bank's own business checking account. C) A credit card company. D) The federal government. Show Answer Correct Answer: A) The account of the bank's customers. 3. When demand for a product increases, this will also cause an increase in price. This is called: A) Demand-pull inflation. B) Cost-push Inflation. C) Deflation. D) Consumer Price Index. Show Answer Correct Answer: A) Demand-pull inflation. 4. Mrs. Askew's family is going on vacation this summer, so they should stick to a ..... to save money. A) Income. B) Savings. C) Budget. D) Expenses. Show Answer Correct Answer: C) Budget. 5. If the inflation rate is more than 50% per month it is A) Inflation. B) Hyperinflation. C) Creeping inflation. D) Walking inflation. Show Answer Correct Answer: B) Hyperinflation. 6. What will be reduced by half if the price level increases by 2 times? A) Demand for goods and services. B) Supply of goods and services. C) Purchasing power of money. D) None of above. Show Answer Correct Answer: C) Purchasing power of money. 7. Inflation is measured by using what is called A) Consumer Purchasing Program (CPP). B) Consumer Price Index (CPI). C) Fixed Income Index (FII). D) Production Possibilities Curve (PPC). Show Answer Correct Answer: B) Consumer Price Index (CPI). 8. Demand-pull inflation may be caused by: A) An increase in costs. B) A reduction in interest rates. C) A reduction in government spending. D) An outward shift in aggregate supply. Show Answer Correct Answer: B) A reduction in interest rates. 9. It is October, and Seth is laid off from work because he is a life guard at the local water park which is now closing until next May. He is experiencing what kind of unemployment? A) Structural. B) Seasonal. C) Frictional. D) Cyclical. Show Answer Correct Answer: B) Seasonal. 10. What type of inflation is caused when banks print more money? A) Bankflation. B) Monetary inflation. C) Hyperinflation. D) Increase in the money supply. Show Answer Correct Answer: B) Monetary inflation. 11. ..... indicates a change in the general price level in the economy. A) WPI. B) CPI. C) Food Basket. D) None of above. Show Answer Correct Answer: A) WPI. 12. Which of the following types of inflation occurs when sales drop and retailers cannot place higher prices on customers? A) Deflation. B) Disinflation. C) Hyperinflation. D) Pre-inflation. Show Answer Correct Answer: B) Disinflation. 13. Economists consider inflation to be negative because A) Inflation encourages consumers to buy goods made in Australia rather than imports. B) It increases the rate of savings. C) It means a recession is around the corner. D) It leads to uncertainty and makes investment more ri. Show Answer Correct Answer: D) It leads to uncertainty and makes investment more ri. 14. What is the final value of a $ 8250 investment after 8 years compounded quarterly at 4.2% p.a.? [0.5 pts] A) $ 30776.62. B) $ 11524.34. C) $ 11465.57. D) None of above. Show Answer Correct Answer: B) $ 11524.34. 15. An attorney spends two hours each week researching if her hourly rate is comparable to other lawyers. A) Shoe leather costs. B) Menu costs. C) Unit of account cost. D) None of above. Show Answer Correct Answer: C) Unit of account cost. 16. Deflation may be a more serious problem than inflation because it may lead to A) A deflationary spiral. B) A serious demand-deficient unemployment. C) A banking crisis. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Company profits are distributed to shareholders in the form of A) Dividends. B) Losses. C) Par values. D) Net asset values. Show Answer Correct Answer: A) Dividends. 18. If inflation is 10% and nominal GDP goes up by 20%, real GDP ..... A) Goes up approximately 2%. B) Goes up approximately 10%. C) Goes up approximately 20%. D) Goes up approximately 30%. Show Answer Correct Answer: B) Goes up approximately 10%. 19. This type of inflation is related with stagflation A) Creep inflation. B) Hyper inflation. C) Open inflation. D) Galloping inflation. Show Answer Correct Answer: D) Galloping inflation. 20. Argentina is currently on its ..... quarter A) First. B) Second. C) Third. D) Fourth. Show Answer Correct Answer: B) Second. ← PreviousNext →Related QuizzesMacroeconomics QuizzesInflation Quiz 1Inflation Quiz 2Inflation Quiz 3Inflation Quiz 4Inflation Quiz 5Inflation Quiz 6Inflation Quiz 7Inflation Quiz 8Inflation Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books