In __________ economy, if prices rise faster than consumer incomes, the number of items consumers can buy decreases.
A)a deflationary
B)an expansionary
C)a recessionary
D)an inflationary
E)a depressive

Question

Quizplus · Accepted Answer

In an inflationary economy, prices are increasing faster than consumer incomes, leading to a decrease in the purchasing power of consumers. This means that they can buy fewer goods and services as prices continue to rise.

In __________ Economy, If Prices Rise Faster Than Consumer Incomes