Which of the Following Is True of Inflation

question 22

Multiple Choice

Which of the following is true of inflation?

• A)It occurs when the demand for a particular currency is more than the supply.
• B)It occurs when securities are purchased in one market for immediate resale in another.
• C)It occurs when two parties agree to exchange currency and execute a deal at a specific date in the future.
• D)It occurs when the quantity of money in circulation rises faster than the stock of goods and services.
• E)It occurs when output increases faster than the money supply.

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Definitions:

Consistently Performed

Actions or behaviors that are carried out regularly and without significant variation, indicating reliability or stability in performance.

Descriptive Statistics

Mathematical procedures that allow a researcher to characterize a data pattern; these procedures include measures of central tendency and of variability.

Demand Characteristics

Cues in an experimental environment that suggest to participants what behavior is expected or desired by the researcher.

Obviously Correct

A term indicating that something is clearly right or true, leaving no room for doubt or debate.