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  3. It is a matter of common observation that although incomes keep going up over the years, people never seem to become much better

It is a matter of common observation that although incomes keep going up over the years, people never seem to become much better

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问题     It is a matter of common observation that although incomes keep going up over the years, people never seem to become much better off. Prices are rising continuously. This condition is termed one of inflation; the money supply is becoming inflated so that each unit of it becomes less valuable. People have grown accustomed 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 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 to value. It is no longer acceptable as a store of value; and it becomes an unsuitable standard of deferred(延期的) payments. Nobody wants to hold a wasting asset(资产), so people try to get rid of money as quickly as possible. Inflation therefore stimulates consumer spending, and prevents people from saving.
In a period of inflation, people are likely to______.
选项 A、keep money in the bank
B、invest heavily in the stock market
C、stop spending money
D、spend money and not bother to save
答案D
解析
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