Inflation and Price Rise

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81. 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

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82. 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

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83. Disinflation refers to:
a) A decrease in the rate of inflation
b) An increase in the rate of inflation
c) Stable prices
d) Deflation

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84. 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

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85. Which of the following is an example of an external factor that can cause inflation?
a) Government policies
b) Technological advancements
c) Global oil prices
d) Population growth

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