Last year,a mother in a small African nation could buy a pound of flour for the Canadian equivalent of $1.30.Six months ago,an identical pound of flour costs $3.40.Today she would need $5.60 to buy that pound of flour.This example of the general upward movement of prices is called which of the following?

Question

Quizplus · Accepted Answer

Inflation refers to the general upward movement of prices over time, which reduces the purchasing power of money. The example given in the question shows how the price of a pound of flour has increased from $1.30 to $5.60 in a year, indicating a significant inflationary trend. Therefore, D) inflation is the best choice.

Last Year,a Mother in a Small African Nation Could Buy