Which of the Following Factors Is Most Correct

question 71

Multiple Choice

Which of the following factors is most correct?

• A)Demand-pull inflation traditionally exists during periods of economic expansion when the demand for goods and services exceeds the available supply of such goods and services.
• B)Cost-push inflation occurs when prices are raised to cover rising production costs, such as wages
• C)Speculative inflation is caused by the expectation that prices will continue to rise, resulting in increased buying to avoid even higher future prices
• D)All of the above are correct
• E)none of the above are correct

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an entity but is not control or joint control over those policies.

Subsidiary

A company that is controlled by another company, usually referred to as the parent company or holding company.

Listed Company

A company whose shares are traded on a public stock exchange, allowing investors to buy and sell shares.