Question

Refer to the article “The Value of Money” in your Money, Money, Money magazine for a complete version of this text.

Which excerpts from “The Value of Money” show a cause-and-effect relationship?

Select Yes or No for each excerpt.

Yes No
“Inflation is an increase in the prices of goods and services.”
Yes – “Inflation is an increase in the prices of goods and services.”
No – “Inflation is an increase in the prices of goods and services.”
“As inflation rises, your purchasing power decreases.”
Yes – “As inflation rises, your purchasing power decreases.”
No – “As inflation rises, your purchasing power decreases.”
“In the language of economics, the things we pay for are called goods and services.”
Yes – “In the language of economics, the things we pay for are called goods and services.”
No – “In the language of economics, the things we pay for are called goods and services.”
“More spending creates more demand for a product.”
Yes – “More spending creates more demand for a product.”
No – “More spending creates more demand for a product.”

Answer 1

Yes

No

Yes

Yes

No

Yes

No

No

Yes

Answer 2

“As inflation rises, your purchasing power decreases.” yes

“More spending creates more demand for a product. yes

“Inflation is an increase in the prices of goods and services.” No

“In the language of economics, the things we pay for are called goods and services.”

No

Step-by-step explanation:

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