Inflation implies that the level of all prices _____________________.

Inflation implies that the level of all prices
_____________________. Question 8 options: 1) decrease 2) stay the
same 3) increase 4) none of the above

Answer

Inflation implies that the level of all prices increases.

To combat inflation federal bank puts some monetary policy like
federal can incraese the interest rate,if the interest rate
increases people has less money to borrow and if the purchasing
power decreases then the demand is decreases and price will be
controlled.

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So option C is the correct statement.