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
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
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
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
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
