CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Money Supply and Inflation

If price drop...

Question

If price drops and people are not willing to pay increased prices despite having more money, this leads to inflation.

A

True

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

False

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is B
False

If prices increase, then this will be counted as inflation. If people don’t want to buy goods, this is another issue. Inflation measures the price of goods in shops.

Suggest Corrections

thumbs-up

0

Similar questions

Q. When the rate of money inflation increases then the prices of commodities _____.

Why are people willing to pay excessive prices for coffee inside airports? (select all applicable reasons)

Q. People inside airports are willing to pay higher prices for coffee because of the lack of alternate options and .

Q. Assertion :During inflation, there is increase in money supply and rise in price level. Reason: The rise in prices is due to shortage in supply of essential consumer goods.

For the following question, arrange the sentences A, B, C, and D to form a logical sequence.

(A) Average pay rises are now running behind the level of inflation for the first time in a year, a report said.
(B) While the UK pay increases have stayed at 2.9% for the past three months, headline inflation is now 3%.
(C) Employees are now certain to seek higher wage rises to bring them back into line with increasing prices.
(D) And this will put further pressure on companies who are already battling a stagnant economic scenario for the past few years.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Money supply and inflation

ECONOMICS

Watch in App

explore_more_icon

Explore more

Money Supply and Inflation

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon