Inflation is defined as
A) the rate of increase in the government budget deficit.
B) the increase in the money supply.
C) the rate of change in the average level of prices.
D) the nominal interest rate minus the price level.

Question

Quizplus · Accepted Answer

Inflation is defined as the rate of change in the average level of prices, meaning the increase in the general level of prices for goods and services over time. Options A, B and D are related to economic terms but not directly linked to the definition of inflation.

Inflation Is Defined as