The Inflation Experienced in the United States During the 1970s

question 96

Multiple Choice

The inflation experienced in the United States during the 1970s as a result of OPEC oil price increases is an example of:

• A)demand-pull inflation.
• B)hyperinflation.
• C)cost-push inflation.
• D)cyclical inflation.
• E)disinflation.

---

Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used in capital budgeting to assess profitability of investments.

Working Capital

The difference between a company's current assets and its current liabilities.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, where the asset's cost is evenly spread over its useful life.

Net Present Value

A financial analysis method used to determine the value of an investment by calculating the present value of its future cash flows.