A Relatively Large Increase in the Cost of Electricity Would

question 192

Multiple Choice

A relatively large increase in the cost of electricity would likely

• A)result in a large increase in the use of gas for home use immediately.
• B)cause an immediate large decline in the use of electricity.
• C)increase the use of gas and decrease the use of electricity after a time lapse.
• D)cause an equal reduction in the use of electricity immediately.

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Definitions:

GICs

Guaranteed Investment Certificates, a type of Canadian investment that offers a guaranteed rate of return over a fixed period.

Purchasing Power

The value of currency expressed by the amount of goods or services that one unit of money can buy.

Inflation Rate

The speed at which the overall price level of goods and services increases, leading to a decline in purchasing power.

Compounded Quarterly

A method in which interest is added to the principal sum of a deposit or loan every three months, leading to interest on interest.