Which of the Following Would Be the Most Likely to Cause

question 162

Multiple Choice

Which of the following would be the most likely to cause inflation?

• A) massive increases in government spending
• B) sustained increases in the money supply
• C) increases in interest rates
• D) a decline in the purchasing power of the dollar

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Definitions:

Interest Rate

The fee, represented as a percentage of the total loan amount, that a lender requires from a borrower for the privilege of borrowing money or other resources.

Prizes

Prizes are awards or rewards given for a specific achievement, often used as a form of recognition or incentive in various fields.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed per unit of time.

Current Amount

The present value or total of a particular financial metric, often used in contrast with past or future amounts.