In a Case of Demand-Pull Inflation

question 45

Multiple Choice

In a case of demand-pull inflation,

• A)prices rise.
• B)prices stabilize.
• C)prices fall.
• D)unemployment rises.

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Definitions:

Promissory Note

A monetary tool that involves a formal commitment from one entity to give a specific amount of cash to another, either when asked or at an agreed-upon date in the future.

Face Value

The nominal or original value of a security or financial instrument as stated by its issuer, often the amount to be repaid at maturity.

Realizable Value

The estimated amount that an entity can receive from the disposal of an asset, after deducting the costs associated with the disposal.

Maturity Value

Maturity value is the amount to be received by an investor at the maturity date of a financial instrument, often including principal and interest.