In Countries with Low Inflation

question 47

Multiple Choice

In countries with low inflation:

• A) M2 growth is a very strong forecaster of inflation.
• B) there tends to be a greater reliance on checks than electronic payments.
• C) M2 growth is a poor forecaster of inflation.
• D) money stocks are a larger percentage of GDP.

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Definitions:

Construction Purchased Saws

The acquisition of saws for the purpose of using them in construction projects, considered a capital expense.

Preferred Customer

A customer who receives special benefits or discounts due to their status or purchasing history with a company.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overhead, payroll, taxation, and interest payments.

Mark-up

The sum added onto the goods' cost price to account for overhead expenses and profit, which establishes the selling price.