In a Cost- Push Inflation

question 68

Multiple Choice

In a cost- push inflation,

• A)increases in SAS lead to decreases in AD.
• B)increases in AD lead to increases in SAS.
• C)decreases in AD lead to increases in SAS.
• D)decreases in SAS lead to increases in AD.

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Definitions:

Bonds Outstanding Method

A method used to calculate the total amount of issued bonds by a corporation that have not yet been redeemed or matured.

Amortizing Discount

An Amortizing Discount is the process of spreading the amount of a bond's discount over its expected life, usually through regular charges to expense.

Bonds Outstanding Method

The bonds outstanding method is an approach to calculating interest expense on bonds payable that considers the total value of all bonds that have not yet been redeemed by the issuer.

Serial Bonds

Bonds that mature in installments over a period rather than having a single maturity date.