Inflation Can Be Caused by

question 151

Multiple Choice

Inflation can be caused by

• A)increases in aggregate demand only
• B)increases in aggregate supply only
• C)decreases in aggregate supply only
• D)increases in aggregate supply or decreases in aggregate demand
• E)increases in aggregate demand or decreases in aggregate supply

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Definitions:

Impute Interest

The process of assigning an implied interest rate to an interest-free or below-market interest loan, which then becomes taxable under the Internal Revenue Code.

Deferred Payment

An arrangement that allows payment to be made at a later date, often used in installment purchases or loans.

Group-Term Life Insurance

A type of life insurance where coverage is provided to a group of people by an employer or association, often at a lower cost than individual policies.

Taxable

Refers to income or transactions that are subject to tax by federal, state, or local taxing authorities.