Which of the Following Is a Possible Cause of Demand

question 35

Multiple Choice

Which of the following is a possible cause of demand pull inflation?

• A) An increase in the prices of imported raw materials.
• B) A higher decline in wages than in the rate of inflation.
• C) A decrease in the income tax rates in the economy.
• D) An increase in the interest rates in the economy.

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Definitions:

Untrue Material Fact

Incorrect or misleading information that is substantial and significant enough to influence a decision-maker's action, particularly in contexts like securities transactions.

Registration Statement

A set of documents filed with the Securities and Exchange Commission that includes material information about a company planning an initial public offering of its securities.

Reasonably Competent Accountant

Refers to an accountant who possesses the average level of skill and knowledge expected of a professional in the accounting field.

Negligence

Negligence is a failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to unintentional harm or damage.