It Is True That Inflation Is a

question 90

Multiple Choice

It is true that inflation is a

• A)continuous increase in the money supply.
• B)continuous fall in prices.
• C)decline in interest rates.
• D)continually rising price level.

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Definitions:

Net Income

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

Operating Leverage

The degree to which a company can increase its profits by increasing sales, reflecting how fixed costs are leveraged against sales volume.

Fixed Expenses

Costs that do not vary with the level of production or sales over a short period, such as rent or salaries.

Cost Structure

The relative proportion of fixed, variable, and mixed costs in an organization.