“Inflation” refers to:

“Inflation” refers to:

  • (A) Higher than the real cost of the commodities
  • (B) Free flow of the money in the market
  • (C) Devaluation of money
  • (D) Poor buying power of money
  • The correct answer is: (D) Poor buying power of money
  • REASON: Inflation reduces the purchasing power of money, meaning the same amount of money buys fewer goods and services over time.
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Related MCQs:

 ‘NATO’ is an abbreviation of:

  • (A) North Atlantic Treaty Organization
  • (B) Non-Aligned Treaty Organization
  • (C) Non-Aligned Trading Organization
  • (D) North American Transport Organization

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