Which of the Following Would Be Most Likely to Result

question 37

Multiple Choice

Which of the following would be most likely to result in an upward shift of the inflation adjustment line?

• A)A fall in the target interest rate
• B)An increase in taxes
• C)A fall in consumer confidence
• D)An increase in imports
• E)An increase in commodity prices

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Definitions:

Surplus

An excess of something, such as goods, services, or resources, beyond what is needed or used.

Balance of Trade

The difference in value between a country's imports and exports over a certain period.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to a country's economy and trade balance.

Deficit

An economic condition where expenditures exceed revenue.