In Which of the Following Sets of Circumstances Can We

question 77

Multiple Choice

In which of the following sets of circumstances can we confidently expect inflation?

• A)aggregate supply and aggregate demand both increase
• B)aggregate supply and aggregate demand both decrease
• C)aggregate supply decreases and aggregate demand increases
• D)aggregate supply increases and aggregate demand decreases

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Definitions:

Deferred Annuity

An annuity contract that delays payments of income, installments or a lump sum until the investor elects to receive them.

Ordinary Annuity

Unchanging installments paid at the finale of successive terms over a fixed duration.

Deferred Annuity

An annuity contract that delays payments until the investor elects to receive them, usually at retirement.

Ordinary Annuity

Periodic equal distributions made at the terminus of each phase throughout a determined period.