Demand-Pull Inflation Can Develop When

question 23

Multiple Choice

Demand-pull inflation can develop when

• A)There is a shortage of investment and investors bid up interest rates.
• B)Inventories shrink and consumers bid up prices.
• C)There is a surplus of resources and so wages are bid up by employers.
• D)Undesired investment occurs.

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Definitions:

Code

A system of laws or regulations, typically organized in a comprehensive and systematic manner.

Maker

In the context of negotiable instruments, the individual or entity that creates and signs the promissory note, committing to pay the specified sum.

Note

A legal document that represents a type of debt or an obligation to pay an amount of money at a future date.

Cashier's Check

A check issued by a bank, drawn on its own funds rather than the account of a private individual, offering a high level of guarantee of payment.