Which of the Following Statements Is NOT True

question 26

Multiple Choice

Which of the following statements is NOT true?

• A) Deflation refers to a situation in which the price level is falling.
• B) When the price level is falling there is always an incentive to delay spending and so there is a negative effect on economic activity.
• C) Cutting interest rates to zero to fight deflation may not work because the opportunities for profitable investment are likely to be limited.
• D) Deflation is good for workers because with wages falling there will be plenty of employment opportunities.

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Definitions:

Operating Expenses Budget

A financial plan detailing the forecasted expenses required to manage and administer a business outside of direct production costs.

Supplemental Schedules

Additional financial documents provided alongside the main financial statements, offering greater detail or breakdown of information.

Staffing Budget

A financial plan that outlines the funds allocated for hiring and compensating employees.

Service Demands

The consumer's need or desire for services, which can vary based on factors like time, location, and quality preferences.