A Primary Cause of Inflation Is

question 92

Multiple Choice

A primary cause of inflation is:

• A) businesses' quest for higher profits via higher prices.
• B) workers' need for higher wages to cover higher prices.
• C) the government central bank printing excess money.
• D) the government borrowing money to distribute for entitlements.
• E) a growing economy influencing purchasing power.

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Definitions:

Prices

The sum of money needed to buy a product, service, or property.

Violates WARP

Refers to an inconsistency in choice behavior that contradicts the Weak Axiom of Revealed Preference, indicating a possible preference reversal.

Bundle

A collection of items or services sold and purchased together.

Violates WARP

Refers to a consumer's choices that contradict the Weak Axiom of Revealed Preference, indicating inconsistencies in preference orderings.