When Does Inflation Exist in the Economy

question 90

Multiple Choice

When does inflation exist in the economy?

• A)whenever the price of a good decreases
• B)whenever the overall price level is rising
• C)whenever the economy experiences a contraction
• D)whenever the price of a good increases

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Definitions:

Cash Budget

A detailed plan showing how cash resources will be acquired and used over a specific time period.

Master Budget

A number of separate but interdependent budgets that formally lay out the company’s sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet.

Master Budget

A comprehensive financial plan that includes all of the smaller budgets within a company, projecting all of its financial activities for a fiscal year.

Interdependent Budgets

Budgets that are connected and rely on figures from each other, illustrating the financial and operational relationships within an organization.