Which of the Following Is Least Likely to Lead to Inflationary

question 23

Multiple Choice

Which of the following is least likely to lead to inflationary monetary policy?

• A) Rising unemployment
• B) Expanding federal budget deficits
• C) Declining oil prices
• D) Conflict in the Middle East

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Unit Contribution Margin

The amount each unit sold contributes to fixed costs and profit after variable costs are subtracted.

Operating Income

The revenue accrued from a firm's foundational business activities, prior to the removal of interest and tax charges.

Fixed Costs

Expenses that do not vary with production volume, such as rent, salaries, and insurance premiums.