This quiz works best with JavaScript enabled. Home > Macroeconomics > Inflation > Inflation – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Inflation Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... inflation affects the poor and middle class people adversely. A) Creeping. B) Walking. C) Running. D) Hyper. Show Answer Correct Answer: C) Running. 2. Menu costs in relation to inflation refer to: A) Costs of finding better rates of return. B) Costs of altering price lists. C) Costs of money increasing its value. D) Costs of revaluing the currency. Show Answer Correct Answer: C) Costs of money increasing its value. 3. Which of the following is an effect of deflation? A) Decrease in unemployment. B) Reduction in production. C) Increase in production. D) Increased spending on goods and services. Show Answer Correct Answer: B) Reduction in production. 4. Bobby's income increased from $ 50, 000 last year to $ 55, 000 this. During the same time the CPI went from 155 to 165. What was his real income change? A) 4.6% increase. B) 5.8% increase. C) 5.8% decrease. D) 4.6% decrease. Show Answer Correct Answer: A) 4.6% increase. 5. Because interest rates increased, businesses cut back on spending for new machinery. How will this affect GDP? A) Government spending decreases, GDP decreases. B) Government spending increases, GDP increases. C) Investment increases, GDP increases. D) Investment decreases, GDP decreases. Show Answer Correct Answer: D) Investment decreases, GDP decreases. 6. What is an effect of inflation on firms? A) Increases value of debt. B) Cost of borrowing decreases. C) Decreasing labour costs. D) Business uncertainty. Show Answer Correct Answer: D) Business uncertainty. 7. In August 2019. the CPI was A) 2.7%. B) 4.2%. C) 1.7%. D) 1.2%. Show Answer Correct Answer: C) 1.7%. 8. Rex owns 170 shares of Crown Inc., for which he paid 28.875 per share. If the company pays dividends of $ 1.45 per share, what is the annual yield to the nearest hundredth of a percent? A) 5%. B) 5.02%. C) 6.02%. D) None of above. Show Answer Correct Answer: B) 5.02%. 9. According to the article, to slow inflation, the Federal Reserve sometimes ..... A) Buys other banks. B) Stops lending money. C) Increases interest rates. D) Decreases interest rates. Show Answer Correct Answer: C) Increases interest rates. 10. What is the fisher effect? A) The nominal interest rate changes as the inflation rate changes. B) Real interest rates change as inflation rates change. C) Changes in the amount of money. D) Changes in monetary value. Show Answer Correct Answer: A) The nominal interest rate changes as the inflation rate changes. 11. Which is the central idea of section 5? A) Inflation might slow down next year. B) Inflation will increase dramatically next year. C) Supply chains will be disrupted for several years. D) Experts have little ability to predict inflation patterns. Show Answer Correct Answer: A) Inflation might slow down next year. 12. You can represent demand-pull inflation in a diagram through ..... A) An inward shift of SRAS. B) An outward shift of AD. C) An outward shift of SRAS. D) An inward shift of AD. Show Answer Correct Answer: B) An outward shift of AD. 13. Mr. Kimoon wants to sell different styles of cap for this coming summer season. He was able to buy 30 caps from the supplier. He wants to use 65% mark-up. What is the mark-up percentage in this problem/ situation? A) Cap. B) 30 caps. C) Summer season. D) 65%. Show Answer Correct Answer: D) 65%. 14. What is the current inflation rate in Australia A) 1.4%. B) 1.6%. C) 1.8%. D) 2.2%. Show Answer Correct Answer: A) 1.4%. 15. Which of the following types of inflation interferes with a company's ability to plan for the future? A) Expected inflation. B) Unexpected inflation. C) Creeping inflation. D) Galloping inflation. Show Answer Correct Answer: B) Unexpected inflation. 16. What is defined as a rate at which the general price level is increasing A) Inflation. B) Inflation rate. C) Deflation. D) Deflation rate. Show Answer Correct Answer: B) Inflation rate. 17. An economy is experiencing accelerating cost-push inflation. Which group is likely to be least concerned by this? OCT/NOV 2015 12 A) A borrowers. B) B consumers. C) C creditors. D) D exporters. Show Answer Correct Answer: A) A borrowers. 18. Which of the following causes of inflation is often described as "too much money chasing too few goods" ? A) Demand-pull inflation. B) Cost-push inflation. C) Demand-push inflation. D) Cost-pull inflation. Show Answer Correct Answer: A) Demand-pull inflation. 19. What is the consumer price index? A) A measure of prices of housing and rental cost all over the country. B) An index of the cost of living for all U.S. Consumers. C) An index determined by measuring the price of standard goods bought by consumers. D) None of above. Show Answer Correct Answer: C) An index determined by measuring the price of standard goods bought by consumers. 20. This group of people benefit from inflation: A) Lenders. B) Savers. C) Borrowers. D) Workers on fixed incomes. Show Answer Correct Answer: C) Borrowers. ← PreviousNext →Related QuizzesMacroeconomics QuizzesInflation Quiz 1Inflation Quiz 2Inflation Quiz 3Inflation Quiz 4Inflation Quiz 5Inflation Quiz 6Inflation Quiz 7Inflation Quiz 9Inflation Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books