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GCE Economics 1989 Question 4

Question 4

Money and Inflation

An inflation in which the price level rises steadily at an average rate of about 2% per annum is best described as

  1. A.galloping
  2. B.induced
  3. C.creeping
  4. D.suppressed
  5. E.run-away.
Show the answer and explanation

Answer: C (creeping)

Explanation

A slow, steady rise in prices of a few per cent a year is called creeping inflation.