11. Which of the following is an example of demand-pull inflation?
a) Decrease in government spending
b) Increase in consumer savings
c) Increase in business investment
d) Increase in the money supply
12. 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
13. 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
14. 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
15. The “core inflation” rate excludes which of the following?
a) Food and energy prices
b) Housing prices
c) Medical costs
d) Education expenses
