Demand-Pull Inflation Occurs When

question 35

Multiple Choice

Demand-pull inflation occurs when

• A) aggregate demand increases persistently.
• B) aggregate supply and aggregate demand decrease persistently.
• C) the government increases its expenditures.
• D) oil prices increase substantially.

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Definitions:

Zero-Balance Account

A bank account that keeps a zero balance by instantly moving money from a primary account in the precise amount needed to settle any checks drawn on it.

Regional Offices

Physical locations established by companies in various regions or countries to handle local operations or provide support.

Lockboxes

A service offered by banks to companies for the collection of payment from customers, involving the use of special post office boxes.

Transactions Needs

The requirement for cash or liquid assets for the purpose of meeting immediate expenses or financial obligations.