For individuals who are holding money or fixed dollar value assets, inflation has the effect of:
a. improving their ability to purchase goods and services with those dollars.
b. reducing their ability to purchase goods and services with those dollars.
c. increasing the purchasing power of those dollars.
d. demonstrating the interest rate effect.
Question 2
Empirical evidence suggests that the federal budget has remained more or less in surplus between 1990 and 2002.
a. True
b. False
Indicate whether the statement is true or false
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