Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

What is most likely to rise when the inflation rate gradually moves from $2\%$ to $8\%$ over one year?

  • Athe cost of updating existing price lists
  • Bthe level of business confidence
  • Cthe real income of fixed-income earners
  • Dthe real value of consumer debt

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