Which of the Following Statements Is True

question 94

Multiple Choice

Which of the following statements is true ?

• A) Demand-pull inflation is caused by excess total spending.
• B) Cost-push inflation is caused by an increase in resource costs.
• C) If nominal interest rates remain the same and the inflation rate falls, real interest rates increase.
• D) If real interest rates are negative, lenders incur losses.
• E) All of the above.

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Definitions:

Periodic Inventory System

An inventory system where the inventory count is physically conducted at specific intervals to determine the ending inventory balance and cost of goods sold.

Perpetual Inventory System

An inventory management method that continuously tracks inventory levels and updates after every transaction.

Terms 2/10

A common payment term indicating that a buyer can take a 2% discount on the invoice amount if paid within 10 days.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for, typically recorded on the balance sheet.