When OPEC raised the price of oil, it created a:
A. demand-pull inflation.
B. cost-push inflation.
C. demand-push inflation.
D. cost-pull inflation.
Answer: B
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The President of which of the following district banks of the Fed is perpetually present on the Federal Open Market Committee?
a. The New York Fed b. The Seattle Fed c. The Boston Fed d. The Chicago Fed e. The Atlanta Fed
Preston goes to the movies every Sunday afternoon. The movie theater offers 4 combinations of popcorn and beverages: the "mini-combo" costs $5 and includes a small popcorn and a small drink, the "medium-combo" costs $7 and includes a medium popcorn and a medium drink, the "value-combo" also costs $7 and includes a small popcorn and a large drink, and the "large-combo" costs $9 and includes a
large popcorn and a large drink. Preston always purchases the "value-combo.". We can conclude that a. Preston cannot afford the "large-combo.". b. Preston cannot afford the "medium-combo.". c. Preston prefers a combo with a larger popcorn-to-beverage ratio. d. Preston prefers a combo with a smaller popcorn-to-beverage ratio.
The money multiplier will be smaller when:
A. bank customers prefer to hold a bigger amount of their money as cash (instead of in their checking account). B. banks prefer to lend out 9 percent of their excess reserves instead of 90 percent. C. when the marginal propensity to save declines. D. when the reserve ratio decreases.
A member in a cartel can earn more profits by
A. selling less than the agreed amount. B. charging a slightly lower price and raising production. C. producing less than the agreed rate. D. none of these.