Question

1. which is not a situation created by inflation?

a price spikes
b overconsumption
c product excesses
d hoarding
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Explanation:

• Inflation is a general increase in prices. Price spikes (a) occur as prices rise. Overconsumption (b) can happen as people buy more before prices increase further. Hoarding (d) occurs as people stock up on goods fearing future price hikes. Product excesses (c) mean too many goods are available, which is not a result of inflation (inflation - related issues are about rising prices and demand - side reactions, not excess supply in the context of inflation's direct effects).

Answer:

c. Product excesses