Inflation is
A)always bad for the economy.
B)helpful to an incumbent seeking re-election.
C)the increase of prices for goods and services over time.
D)a necessity to strengthen the dollar.

Question

Quizplus · Accepted Answer

Inflation is the increase of prices for goods and services over time. It is neither always bad nor always good for the economy, as moderate inflation can promote economic growth, while high inflation can cause instability and decrease purchasing power. It is also not necessary to strengthen the dollar, as low inflation can help maintain the value of the currency. Incumbents may use policies to try to maintain a low inflation rate to appeal to voters, but this does not make inflation helpful or beneficial in itself.

Inflation Is