If There Is Persistent Inflation

question 227

Multiple Choice

If there is persistent inflation

• A) long-run aggregate supply is growing at a faster rate than aggregate demand.
• B) long-run aggregate supply is growing at a slower rate than aggregate demand.
• C) there is an excess of total planned expenditures.
• D) long-run aggregate supply is constant.

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Definitions:

Cash Discount

A reduction in the invoice price offered by a seller to encourage early payment by the buyer.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Credit Extension

Credit extension is the process by which a lender provides funds or permits a borrower to purchase goods or services now with the promise to pay in the future.

Receivables Financing

A type of financing where a company uses its accounts receivable as collateral for a loan.