Which of the Following Is Not an Inflation Factor

question 5

Multiple Choice

Which of the following is not an inflation factor?

• A)Excess of supply for a good or goods as compared with the demand
• B)Increases in the cost of items needed to produce a good
• C)Lack of competition arising from few producers for that item and barriers to new companies entering the market
• D)An excess supply of money in the economy
• E)All of the above are inflation factors

---

Definitions:

Political Subdivision

An administrative division of a country that is granted certain powers and responsibilities by legislation, such as a city, county, or district.

Constructive Receipt

A tax principle that taxes income individuals have earned but not yet received, based on the availability without substantial restriction.

Control

Refers to the power to influence or direct people's behavior or the course of events.

Interest Income

Income earned from the lending of money or from depositing funds in interest-bearing accounts.