A characteristic of the inflation rate is that ________.
A)it typically goes down in a boom
B)it typically goes up in a recession
C)it is a lagging indicator
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The inflation rate is typically a lagging indicator, meaning it tends to follow changes in the economy rather than lead them. It is not necessarily true that it goes down in a boom or up in a recession.

A Characteristic of the Inflation Rate Is That ________