5.2 - Inflation and Interest Rates
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Practice Questions
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What is inflation?
💡 Hint: Think about how prices change over time.
Name one type of inflation.
💡 Hint: Consider what causes price increases.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What defines inflation?
💡 Hint: Think about the long-term effects on prices.
True or False: Cost-push inflation is caused by decreased consumer demand.
💡 Hint: Consider what happens when production costs go up.
1 more question available
Challenge Problems
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Consider a situation where inflation rises unexpectedly. Discuss the possible responses from both consumers and central banks.
💡 Hint: Think about how financial behavior changes with price uncertainty.
You own a business facing cost-push inflation due to increased supplier costs. How would this impact your business decisions?
💡 Hint: Think about balancing costs and market competition.
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