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:

Investment Account

A financial account held at a financial institution that contains securities, cash, and other assets, typically used for investing purposes.

Equity Method

An accounting technique used when a company holds a significant but not controlling investment in another company, recognizing its share of the investee's profits and losses.

Cash Flow Statement

A financial statement that shows the cash inflows and outflows for a company over a period, including operating, investing, and financing activities.

Investing Activities

Transactions related to buying or selling long-term assets and investments other than cash equivalents.