What Is the Determining Factor for Inflation to Occur

question 103

Multiple Choice

What is the determining factor for inflation to occur?

• A) Currency can no longer be exchanged for gold or silver.
• B) Value of the currency is based on the stock market.
• C) Currency is issued at a higher rate than the growth of the Gross Domestic Product.
• D) Prices are raised beyond what most people can afford.

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Definitions:

Direct Labor

Factory labor costs that can be easily traced to individual units of product. Also called touch labor.

Units

A measure of quantity in accounting, production, or inventory management, often used to quantify the amount of output or sales.

Net Operating Income

The profit generated from a company's core business operations, excluding deductions for interest and taxes.

Client-Visits

Meetings or engagements with clients outside or within the company premises to discuss business, services, or products.