Multiple Choice
A decline in interest rates leads to a sharp increase in consumption and investment. The general price level in the economy also increases. This is an example of:
A) demand pull inflation.
B) cost push inflation.
C) stagflation.
D) deflation.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q48: A firm reduces hiring in the next
Q49: Which of the following is a disadvantage
Q50: The balance of payments measures the:<br>A) difference
Q51: Which of the following is an instrument
Q52: When does demand pull in?ation occur in
Q54: The _ measures the percentage of people
Q55: Suppose that the rate of inflation is
Q56: Deflation increases the purchasing power of money.
Q57: Cost push inflation occurs when aggregate demand
Q58: In order to calculate national income, depreciation