What Is One Cause of Inflation

question 27

Multiple Choice

What is one cause of inflation?

• A) the persistent rise in prices in the economy
• B) the inability of production to keep up with spending in the economy
• C) increased spending by people and the government.
• D) economic growth without money growth

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Definitions:

Diversified Portfolio

An investment strategy that involves spreading investments across various financial instruments, industries, and other categories to minimize risk.

Rate of Return

A financial metric used to calculate the percentage profit or loss of an investment relative to its cost.

Beta Risk

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Diversified Portfolio

An investment portfolio constructed to spread risk by selecting assets across various classes.