A Rise in the Price Level Because of an Increase

question 160

Multiple Choice

A rise in the price level because of an increase in the price of oil

• A) definitely triggers a cost- push inflation.
• B) might trigger a demand- pull inflation.
• C) definitely triggers a demand- pull inflation.
• D) might trigger a cost- push inflation.

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Definitions:

Total Assets

The sum of all resources owned by a company, valued in monetary terms, which include buildings, equipment, inventory, and cash.

Cash

A form of liquid asset that includes currency and other assets that are readily convertible to known amounts of cash and can be used to settle debts, purchases, or other transactions.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.