If we look at inflation as measured by the CPI in the U.S.over the last four decades, we realize that the rate of inflation
A)varied much more in the 1960s than in the 1970s or 1980s
B)was much lower in the 1970s than in any other decade
C)varied greatly over time but has continued to decrease on average since 1969
D)reached an all-time low in 1981
E)none of the above

Question

Quizplus · Accepted Answer

The statement in option E, "none of the above," is correct because the other options provide inaccurate descriptions of U.S. inflation trends over the last four decades. Inflation did not vary more in the 1960s than in the 1970s or 1980s; in fact, the 1970s saw significant inflation, often attributed to oil price shocks and other factors. The 1970s did not have lower inflation than other decades; it was a period of notably high inflation. Inflation has not continuously decreased since 1969; it has fluctuated, with periods of higher and lower rates. Finally, 1981 did not mark an all-time low for inflation; it was actually a year of high inflation, part of a period of significant inflationary pressure that the Federal Reserve addressed with high interest rates.

If We Look at Inflation as Measured by the CPI