In the Long Run, Sustained Inflation Is Due to

question 20

Multiple Choice

In the long run, sustained inflation is due to

• A) a one-time increase in money growth.
• B) a continuous increase in the money growth rate.
• C) a continuous increase in aggregate demand.
• D) the rising price of oil.

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Definitions:

Stated Value

The nominal value of a share of stock as determined by the issuing company, which may differ from its market value.

Common Stock

Shares entitling their holder to dividends that vary in amount and may even be missed, depending on the fortunes of the company.

Journal Entry

A record that captures the financial impact of a business transaction in the accounting system.

Stock Issuance

The process of making new shares available for sale by a company, often to raise capital.