To Prevent Cost-Push Inflation

question 130

Multiple Choice

To prevent cost-push inflation

• A) there must not be an excess demand for money.
• B) interest rates must not rise.
• C) there must not be an increase in government purchases.
• D) the Fed must not let the quantity of money rise persistently.

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Definitions:

Depreciation Charges

The allocation of the cost of tangible assets over their useful lives, reflecting the decrease in value over time.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Depreciation Expense

A measure of the reduction in value of an asset over time, often used for tax and accounting purposes.

Net Cash Flow

The difference between a company's cash inflows and outflows over a period of time.