_____ is caused by increases in the prices of raw materials and other factors of production.

Question

Quizplus · Accepted Answer

Cost-push inflation is caused by increased costs of production, such as raw materials and other factors of production. This results in a decrease in the supply of goods and services, and an increase in their prices. Therefore, option C is the best choice. Option A refers to a type of loan in which the borrower's payments are not sufficient to cover the interest due, which is not related to the question. Option B is incorrect because the term 'supply-side deflation' is not widely used or recognized. Option D, price penetration, refers to a strategy of setting a low price for a product to enter the market, which is not related to the question.

_____ Is Caused by Increases in the Prices of Raw