For a cost-push inflation to occur, oil price increases must be accompanied by
A. decreased investment spending.
B. lower personal tax rates.
C. increases in the quantity of money.
D. increases in government expenditures.
Answer:C
For a cost-push inflation to occur, oil price increases must be accompanied by
A. decreased investment spending. B. lower personal tax rates. C. increases in the quantity of money. D. increases in government expenditures.