Which Type of Inflation Occurs When the Demand for Goods

question 39

Multiple Choice

Which type of inflation occurs when the demand for goods and services is greater than the supply?

• A) demand-push
• B) cost-push
• C) demand-pull
• D) supply-side

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Definitions:

Independent Variable

The variable causing a change in some other (dependent) variable.

Dependent Variable

A variable that changes as a consequence of a change in some other (independent) variable; the “effect” or outcome.

Interest Rate

The interest rate is the percentage charged on the total amount borrowed or earned, representing the cost of borrowing money or the reward for saving.

Investment

The act of allocating resources, usually financial, into something with the expectation of generating income or profit.