46. Inflation is considered harmful because it:
a) Reduces the cost of living
b) Increases the standard of living
c) Reduces the purchasing power of money
d) Encourages investment
47. Which of the following is an example of cost-push inflation?
a) Increase in government spending
b) Increase in consumer spending
c) Increase in wages
d) Increase in exports
48. Disinflation refers to:
a) A decrease in the rate of inflation
b) An increase in the rate of inflation
c) Stable prices
d) Deflation
49. Which of the following is an effect of inflation on borrowers?
a) Decreased interest rates
b) Increased purchasing power
c) Increased real value of debt
d) Decreased borrowing costs
50. Stagflation refers to:
a) High inflation and low unemployment
b) High inflation and high unemployment
c) Low inflation and low unemployment
d) Low inflation and high unemployment
