Increases in the Quantity of Money Can Start a ________

question 246

Multiple Choice

Increases in the quantity of money can start a ________ inflation and an increase in government expenditure can start a ________ inflation.

• A)demand-pull; demand-pull
• B)demand-pull; cost-push
• C)cost-push; cost-push
• D)cost-push; demand-pull
• E)None of the above are correct because increases in the quantity of money are necessary to continue an inflation but cannot start an inflation.

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Definitions:

Cash Disbursements

Outgoing payments made by a business, often documented in a cash disbursement journal, including expenses, creditor payments, and other financial outflows.

Cost of Goods Sold

Cost of goods sold (COGS) represents the direct costs attributable to the production of goods sold by a company, including materials and labor.

Merchandise Inventories

Goods or products that a company holds for the purpose of sale to customers in the ordinary course of business.

Sales Budget

A detailed plan that estimates future sales, usually expressed in both units and dollars, for a specific period.