THIRD QUIZ FOR ECONS 204: MACRO ECONOMICS II Days Hours Minutes Seconds Leave this field blank Your Name: Reg. Number Your Department: Course of Study: 1. What characterizes walking inflation? Pick the correct answers from the options provided. ( A) Inflation rates exceeding 50% per month (B) Moderate rate of price increases (3% to 10% annually) (C) Mild and gradual increase in prices (1% to 3% annually) (D) Higher rate of price increases than walking inflation. 2. When does cost-push inflation occur? Pick the correct answers from the options provided. (A) Demand for goods and services exceeds supply (C) Costs of production increase (D) Expectations of future price increases (B) Excessive money creation 3. What is one effect of inflation on individuals? Pick the correct answers from the options provided. (A) Increased purchasing power (B) Improved standard of living (C) Reduced purchasing power (D) Stable financial planning. 4. How can inflation affect the value of savings over time? Pick the correct answers from the options provided. (A) Increases the value of savings (B) Has no impact on savings (C) Erodes the value of savings (D) Stabilizes the value of savings 5. Why do central banks often raise interest rates during inflation? Pick the correct answers from the options provided. (A) To encourage borrowing (B) To discourage borrowing (C) To stabilize interest rates (D) No relation to inflation Submit
