A Sudden Increase in the Price of Oil Causes a ________

question 53

Multiple Choice

A sudden increase in the price of oil causes a ________ inflation and ________ output.

• A) demand-pull; lower
• B) cost-push; higher
• C) demand-pull; higher
• D) cost-push; lower

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Definitions:

Par-value Preferred Stock

Par-value preferred stock is a type of preferred share that has a nominal face value indicating the amount that must be repaid if the company is liquidated.

Dividends

Distributions of profits from a corporation to its shareholders, typically in the form of payments.

Par Value

A nominal value assigned by the issuer that represents the minimum price at which shares can be issued, often used in the context of stocks or bonds.

Fair Market Value

The estimated price at which an asset or service would exchange hands between a willing buyer and seller, both having reasonable knowledge of the relevant facts.