Question

(1) Open Inflation	A) Means more money being paid by the consumers for what they buy.
(2) Repressed Inflation	B) Where the government does not attempt to prevent the price rise.
(3) Inflation tax	C) When the government interrupts a price rise, there is a repressed or suppressed inflation.

• A. (2)-A (3)-B (1)-C
• B. (3)-A (2)-B (1)-C
• C. (3)-A (1)-B (2)-C
• D. (1)-A (2)-B (3)-C

Answer 1

Answer: (C)

(3)-A (1)-B (2)-C

• Open inflation: A situation in which the prices of consumer goods rise consistently.
  
• Repressed inflation: A situation in which price and wage increases are restrained by official controls. This can lead to an increase in inflation when the controls are relaxed.
  
• Inflationary tax: Means more money being paid by the consumers for what they buy during inflation.