Creeping inflation
A) erodes the value of a country's money over a long period of time.
B) inevitably tends to die out.
C) has been the experience of the United States since its founding.
D) does not tend to redistribute income.
E) inevitably leads to runaway inflation.

Question

Quizplus · Accepted Answer

Creeping inflation refers to a gradual increase in the overall price level of goods and services in an economy over a period of time. This leads to a reduction in the purchasing power of money, which means that the same amount of money can buy fewer goods and services. In other words, the value of money is eroded over time. This phenomenon can last for many years or even decades, and is a common experience in many countries around the world.

Creeping Inflation