05.06 Does Inflation Matter Quiz

Question: If one U.S. dollar equals one euro, which of these could result if the euro experiences inflation?

Answer: U.S. citizens would purchase more goods from the E.U. for less money.

Question: If the U.S. dollar is strong, what is the impact on trade between China and the U.S.?

Answer: Imports from China to the U.S. increase.

Question: A history graduate student in the United States gets an $18,000 stipend per year. The U.S. sees significant inflation. How might the student react?

Answer: Ask for a cost-of-living increase to her stipend.

Question: Which of these would be a result of inflation?

Answer: A company scales back production.

Question: Which of these statements is true?

Answer: Inflation is problematic if unexpected.