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

Question

Quizplus · Accepted Answer

In an inflationary economy, prices increase, and if they rise faster than consumer incomes, the purchasing power of consumers decreases, leading to a reduction in the number of items they can buy.

In A(n) ________ Economy, If Prices Rise Faster Than Consumer