Owing to inflation, operating costs of local government ________ every year.

Question

Quizplus · Accepted Answer

Inflation causes the general price level to rise over time, so the most likely impact on the operating costs of local government is that they will also rise. Thus, the best choice is B. Option A, double is too extreme. Options C and D, stay level and fall, respectively, are unlikely given the inflationary environment. Option E, fall dramatically, is hyperbolic and unlikely, so it is not the best choice.

Owing to Inflation, Operating Costs of Local Government ________ Every