A Sharp Rise in Fuel Prices Increases the General Price

question 94

Multiple Choice

A sharp rise in fuel prices increases the general price level in an economy. This is an example of:

• A) cost push inflation.
• B) demand pull inflation.
• C) stagflation.
• D) deflation.

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Definitions:

Shares Outstanding

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

Price Per Share

The current market value of a single share of a company’s stock.

Total Market Value

The aggregate valuation of a company, asset, or investment determined by multiplying the current market price by the total outstanding shares.

Debt-Equity Ratio

An indicator of a business's degree of financial risk, assessed by dividing its overall liabilities by the shareholder equity.