Which of the Following Events Could Cause Inflation in the United

question 23

Multiple Choice

Which of the following events could cause inflation in the United States-a country that uses fiat money?

• A) There is a discovery of a new silver mine.
• B) There has been a decision made to switch from a currency based on the amount of gold (a scarce metal)to a currency based on the amount of silver (a plentiful metal).
• C) Individuals are frustrated by the infrequent occurrence of the double coincidence of wants.
• D) The government decides to print more money.
• E) The government decides to transition to a commodity-backed money.

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Definitions:

Constitution

The system of fundamental principles or established precedents according to which a state or other organization is governed.

Dividends Payable

represents a company's obligation to pay its shareholders a declared amount from its earnings.

Liability

A financial obligation or amount owed by a business or individual to others, which must be settled in the future.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its net identifiable assets.