Increases in the Quantity of Money Can Start a ________

question 105

Multiple Choice

Increases in the quantity of money can start a ________ inflation,and an increase in government expenditure can start a ________ inflation.

• A)demand-pull;demand-pull
• B)demand-pull;cost-push
• C)cost-push;cost-push
• D)cost-push;demand-pull
• E)None of the above is correct because increases in the quantity of money are necessary to continue an inflation but cannot start an inflation.

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Definitions:

Inelastic Demand

A situation where the demand for a product or service does not significantly change in response to price changes.

Teenage Workers

Young individuals, typically aged 13 to 19, employed in various jobs, often part-time or during school breaks.

Cross Elasticity

A measure of how the demand for one good responds to a change in the price of another good.

Dress Shirts

Garments with a collar, a full-length opening at the front from the collar to the hem, and sleeves with cuffs, typically worn for formal occasions or as part of office attire.