If AS Increases at a Faster Rate Than AD, the Result

question 185

Multiple Choice

If AS increases at a faster rate than AD, the result will be

• A)demand-side inflation.
• B)supply-side inflation.
• C)falling prices.
• D)stable prices.

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Definitions:

Marketable Securities

Financial instruments that can easily be converted into cash, typically with high liquidity and short maturity periods.

Short-Term Financing

Borrowing options intended for use over a short period, often to support the day-to-day operations of a business.

Maturity Factoring

Short-term financing in which the factor purchases all of a firm’s receivables and forwards the proceeds to the seller as soon as they are collected.

Short-Term Financing

Borrowing funds or obtaining financial support for a short duration, typically less than a year, to cover immediate needs.