Continued Inflation Occurs

question 26

Multiple Choice

Continued inflation occurs

• A) if there is a sustained increase in the price level.
• B) only if there is a sustained increase in the price of every good and service.
• C) only if there is a sustained increase in the price of every good and service by the same dollar amount.
• D) only if there is a sustained increase in the price of every good and service by the same percentage.

---

Definitions:

Paid-In Capital

Funds that a company raises by issuing shares of stock, representing the amount shareholders contribute in exchange for stock.

Treasury Stock

Shares that were issued and later reacquired by the issuing corporation, not considered when calculating dividends or earnings per share.

Cash Dividend

A payment made by a company out of its earnings to shareholders, typically in the form of cash.

Shares Issued

The number of shares that have been allocated and are held by shareholders, including both public investors and company insiders or affiliates.