Which of the Following Is an Important Cause of Inflation

question 73

Multiple Choice

Which of the following is an important cause of inflation in an economy?

• A)increases in productivity in the economy
• B)the influence of positive externalities on the economy
• C)lack of property rights in the economy
• D)growth in the quantity of money in the economy

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Definitions:

Impossible

A term used to describe a task or condition that cannot realistically be fulfilled or achieved.

Agency Relationship

A legal arrangement in which one party, the agent, acts on behalf of another party, the principal, in conducting transactions with third parties.

Bind

To legally obligate oneself or another party to an agreement or contract.

Principal

The main party to a transaction or contract, or the amount of money on which interest is paid or received.