6. Hyperinflation is characterized by:
a) Mild increase in prices
b) Rapid and uncontrollable increase in prices
c) Stable prices
d) Decrease in prices
7. Which of the following is an effect of inflation?
a) Increase in purchasing power
b) Increase in real wages
c) Decrease in the value of money
d) Increase in savings
8. 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
9. 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
10. Disinflation refers to:
a) A decrease in the rate of inflation
b) An increase in the rate of inflation
c) Stable prices
d) Deflation
