When Does 'Inflation' Occur

question 93

Multiple Choice

When does 'inflation' occur?

• A)when the value of money is rising
• B)when the value of real GDP decreases
• C)when the value of real GDP increases
• D)when the general price level is rising

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Definitions:

Straight Line Method

A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Crossover Rate

The crossover rate refers to the point at which two different projects have the same net present value (NPV), used in capital budgeting to compare the desirability of investments or projects.

Mutually Exclusive

Situations, events, or decisions that cannot occur or be undertaken simultaneously—if one happens, the other cannot.