The National Center for Public Policy and Higher Education reports that since 1980,college tuition and fees have increased by 440 percent whereas family incomes have risen less than 150 percent.This is an example of a(n)__________ economy.

Question

Quizplus · Accepted Answer

The fact that college tuition and fees have increased by a much higher percentage than family incomes since 1980 indicates an inflationary economy. In an inflationary economy, the general price level of goods and services rises, reducing the purchasing power of money.

The National Center for Public Policy and Higher Education Reports