ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A increased consumer expenditure and tighter control on international trade
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B increasing international competition and reduced world incomes
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C low interest rates and expectations of future price increases
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D protectionist trade measures and a rise in raw material prices
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Detailed explanation-1: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.
Detailed explanation-2: -It’s important to note that each country calculates its inflation rate a bit differently and regional circumstances can also affect the rate. A 10% inflation rate in the U.S., for instance, isn’t necessarily the same as a 10% inflation rate in Turkey.
Detailed explanation-3: -Argentina and Turkey are currently experiencing the highest inflation rates in the G20. In January 2023, Turkey’s rate was 57.7%.
Detailed explanation-4: -Most economists now believe that low, stable, and-most important-predictable inflation is good for an economy. If inflation is low and predictable, it is easier to capture it in price-adjustment contracts and interest rates, reducing its distortionary impact.