Inflation and Price Rise

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76. Which of the following is an example of an inflation-indexed security?
a) Treasury bill
b) Corporate bond
c) Stock
d) Treasury Inflation-Protected Securities (TIPS)

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77. Which of the following is an example of an automatic stabilizer that can mitigate the impact of inflation?
a) Unemployment benefits
b) Tax cuts
c) Government subsidies
d) Infrastructure spending

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78. The term “demand-pull inflation” implies that inflation is caused by:
a) An increase in the supply of money
b) A decrease in aggregate demand
c) An increase in aggregate demand
d) A decrease in the supply of money

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79. The term “core inflation” excludes which of the following?
a) Food and energy prices
b) Housing prices
c) Medical costs
d) Education expenses

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80. Which of the following is a measure taken to control inflation?
a) Decreasing taxes
b) Increasing government spending
c) Decreasing interest rates
d) Increasing money supply

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