Which of the following best describes the evolution of inflation in Canada?
A)It has been relatively constant over the past 70 years.
B)The inflation rate was constant at 7 percent annually for most of the twentieth century.
C)During 1990s, prices rose at an average rate of about 2 percent per year.
D)There was deflation during the 1990s.

Question

Quizplus · Accepted Answer

Inflation in Canada has not been constant over the past 70 years, as option A implies. B is incorrect because 7 percent annual inflation would not be considered constant, but rather very high. D is incorrect because there was no deflation in Canada during the 1990s. Option C accurately describes the evolution of inflation in Canada in the 1990s, as prices rose at an average rate of about 2 percent per year.

Which of the Following Best Describes the Evolution of Inflation