Which of the Following Would Lead to Higher Inflation in the Long

question 19

Multiple Choice

Which of the following would lead to higher inflation in the long run?

• A)A decrease in consumer confidence
• B)An increase in imports
• C)An increase in taxes
• D)An increase in government spending
• E)An increase in the savings rate

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Definitions:

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including repayment timelines, interest rates, and penalties for late payments.

Net 30

A trade credit term indicating that payment in full is expected within 30 days after the invoice date or goods are received.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Preferred Stock

Equity shares that give investors a claim on a company's earnings before dividends are paid to common stockholders, often with no voting rights.