Which Type of Inflation Is Triggered by Increases in Production

question 58

Multiple Choice

Which type of inflation is triggered by increases in production that push up the costs of final goods and services?

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

---

Definitions:

Underwriter

A financial specialist or institution that assesses and undertakes the risk of another entity, often seen in insurance and securities issuances.

Direct Costs

Expenses that can be directly attributed to the production of goods or services, such as materials and labor.

Floatation Costs

Costs a company faces when issuing new securities, such as underwriter fees, legal charges, and registration expenses.

Firm Commitment

A firm commitment refers to an underwriter's agreement to assume all inventory risk and purchase all securities directly from the issuer for sale to the public.