When Inflation Increases Over the Long Run (Several Years)

question 35

Multiple Choice

When inflation increases over the long run (several years)

• A)Consumption will increase at a faster rate in real dollars
• B)Interest rates will move up with inflation
• C)Real GDP growth will stabilize at the rate of inflation plus 3% real growth
• D)The dollar will usually rise relative to currencies of countries where inflation is growing at a slower rate

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Definitions:

Articles Of Incorporation

A method of incorporating based on a US approach and used in some jurisdictions in Canada.

Memorandum

A written document that communicates information, policies, or decisions within an organization or between entities.

Lift The Corporate Veil

A legal action to treat the rights or liabilities of a corporation as the rights or liabilities of its shareholders or directors.

Pre-Emptive Rights

Rights granted to existing shareholders to purchase additional shares before the company offers them to the public, to maintain their percentage of ownership.