It is a matter of common observation that although incomes keep going up over the year

s, people never seem to become much better off! Prices are rising continuously.This condition is termed one of inflation(通货膨胀); 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 of value.It is no longer acceptable as a store of value; and it becomes an unsuitable standard of deferred(延迟) 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.

1.Inflation is a situation in which __________.

A.we find our money increase in its value

B.employment no longer becomes a problem

C.people can always find better paying jobs

D.money keeps losing its value

2.According to the author, inflation __________.

A.is very common at the present time

B.seldom happens

C.has become rare in recent years

D.is just reasonable

3.According to the passage, if incomes and prices rise together __________.

A.money will hold its value

B.inflation poses no problem

C.inflation will remain to be a problem

D.the business will prosper

4.When money loses its value __________.

A.it is no longer stable

B.its rate against gold will be kept at the same level

C.goods will lose their value

D.incomes will keep rising

5.In a period of inflation, people are likely to __________.

A.invest heavily on the stock market

B.save money

C.hold on to money as a dependable asset

D.spend money and not bother to save