Which of the Following Would Be Expected to Cause a an Increase

question 57

Multiple Choice

Which of the following would be expected to cause a an increase in the inflation rate rather than a once-and-for-all increase in the price level?

• A)the imposition of a new sales tax
• B)the sudden doubling of a key raw materials price
• C)a new payroll tax that raises unit wage costs
• D)expectations of higher future inflation
• E)an early frost that damages the agricultural harvest

---

Definitions:

Sabotage

Deliberate actions aimed at damaging or obstructing the operations, reputation, or interests of an organization by insiders or competitors.

Espionage

The practice of spying or using spies to gather information, especially for military or political purposes.

Vandalism

The act of deliberately destroying or damaging public or private property.

Deliberate

Carried out consciously and intentionally, often after careful consideration.