An Increase in the Rate of Inflation

question 85

Multiple Choice

An increase in the rate of inflation:

• A)Can only result from increases in aggregate demand
• B)Can only result from upward shifts in the short-run aggregate supply curve
• C)Will result only if the long-run aggregate supply curve is vertical
• D)Can result from shifts in either the dynamic aggregate demand curve or the short-run aggregate supply curve

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Definitions:

Face Value

The nominal or original value of a financial instrument as stated by its issuer.

Face Value

The nominal or original value of a security or financial instrument as stated by the issuer.

Note Payable

A written promise to pay a specific sum of money, on demand or at a set time, to the holder of the note.

Maturity Value

The amount that will be paid to the holder of a financial instrument at its maturity date, including principal and any remaining interest.