An indication that there is inflation in a country is that
A.
there is a decrease in the demand for goods and services
B.
people prefer to lend than to borrow
C.
the same amount of money buys lower quantity of goods
D.
there are too many goods in circulation
Correct Answer: Option C
Explanation
Inflation is a general increase in prices and fall in the purchasing value of money. Therefore, when there is inflation, the same
amount of money buys a lower quantity of goods because the value of money has fallen.
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