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It is matter of common observation that although money incomes keep going up over the years, we never seem to become much better off! Prices are rising continuously. This condition is named one of inflation (通货膨胀 ) ; the money supply is becoming inflat

2019-05-23

It is matter of common observation that although money incomes keep going up over the years, we never seem to become much better off! Prices are rising continuously. This condition is named one of inflation (通货膨胀 ) ; the money supply is becoming inflated so that each unit of it becomes less valuable. We have grown used in recent years to higher and higher rates of inflation. What could be bought ten years ago for one dollar now costs well over two dollars? Present indications (迹象) are that this rate of inflation is tending to rise rather than to fall. If in the real world our money incomes go up at the same rate as prices, one might think that inflation does not matter. But it does. When money is losing value it lacks one of the qualities of a good money stability of value. It is no longer acceptable as a store of value; and it becomes unsuitable standard of deferred (延期的 ) payments. Nobody wants to hold a wasting asset(财产), so people try to get rid of money as quickly as possible. Inflation therefore stimulates(刺激) consumer spending, and prevents saving.

1. Over the years, our incomes have been increasing, and we________.

Aseem to be well off at a quicker rate

Bare actually no better, if not worse, in our financial condition

Ccan afford to buy more of the things that we want

Dhave managed to keep prices down

2. Inflation is a situation in which________.

Awe can watch our money increase in its value

Bemployment no longer becomes a problem

Cpeople can always find better paying jobs

Dmoney keeps losing its value

3. If incomes and prices rise together, people might think that________.

Athere will be no more market fluctuations

Bmoney will hold its value

Cinflation will remain to be a problem

Dinflation causes no problem

4. In a period of inflation, people are likely to________.

Ainvest heavily on the stock market

Bsave money

Chold on to money as a dependable asset

Dspend money and not bother to save

 

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1B2D3D4D 1B2D3D4D
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