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Economics (AS & A Level) · Oct / Nov 2021 · Paper 12 · Question 20

9708Price stability

Which statement about inflation is correct?

  1. AInflation will lead to a rise in exports.
  2. BInflation will lead to a rise in real incomes.
  3. CInflation will lead to a rise in the cost of living.
  4. DInflation will lead to a rise in the purchasing power of money.

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Correct answer: C. Inflation will lead to a rise in the cost of living.

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