12
practice testMultiple Choice

Practice Test

Question 12 • Personal Finance and Economics

What are the signs of low inflation? Choose three correct answers.

Answer
A
The economy grows in a healthy way.
B
Demand steadily falls.
C
The economy stagnates and struggles.
D
Prices continue to decrease.
E
Prices continue to increase.
F
Demand steadily rises.

Explanation

Low inflation means prices are rising slowly rather than falling, while the economy continues to grow. Steadily rising demand can support that healthy growth, and prices continue to increase at a low rate. Falling demand, decreasing prices, and a stagnating economy suggest economic weakness instead.

AI-written and checked against the verified answer.

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