Which of these is a sign of inflation?

A. A negative number for the Consumer Price Index shows prices are falling.

B. A negative number for the Consumer Price Index shows prices are rising.

C. A positive number for the Consumer Price Index shows prices are falling.

D. A positive number for the Consumer Price Index shows prices are rising.


Respuesta :

The option which is a sign of inflation is D. A positive number for the Consumer Price Index shows prices are rising. 
Inflation means that the prices are rapidly rising so that not many people can actually buy the goods.

The answer is "D. A positive number for the Consumer Price Index shows prices are rising".


The prices of goods and services vary after some time, yet when costs change excessively and too rapidly, the impacts can stun an economy. The Consumer Price Index (CPI), the rule measure of the costs of products and enterprises, shows whether the economy is encountering swelling, flattening or stagflation. The CPI's outcomes are generally foreseen and viewed; the CPI assumes a role in many key budgetary choices, including the Federal Reserve loan fee arrangement and the supporting choices of significant banks and partnerships. Singular financial specialists can likewise profit by viewing the CPI when settling on supporting and distribution decisions.

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