A continuing increase in the price of goods and services is called:

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Prepare for the QFA Investments Exam 1. Study with flashcards and multiple-choice questions with detailed explanations. Enhance your understanding and succeed on your exam!

Multiple Choice

A continuing increase in the price of goods and services is called:

Explanation:
Inflation is a sustained, general rise in the price level of goods and services over time, meaning money buys less than before. A continuing increase in prices fits this description, so the correct term is inflation. Deflation is the opposite—a general fall in prices. Reflation describes policy actions intended to raise demand and prices after a downturn, not the ongoing price rise itself. Regression isn’t a standard term for price movements.

Inflation is a sustained, general rise in the price level of goods and services over time, meaning money buys less than before. A continuing increase in prices fits this description, so the correct term is inflation. Deflation is the opposite—a general fall in prices. Reflation describes policy actions intended to raise demand and prices after a downturn, not the ongoing price rise itself. Regression isn’t a standard term for price movements.

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