Deflation Is A/an ________ in the Average Level of Prices

question 7

Multiple Choice

Deflation is a/an ________ in the average level of prices of goods and services.

• A)increase
• B)decrease
• C)stagnation
• D)increase followed by a decrease

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Definitions:

Coupon Rate

The interest rate stated on a bond when it's issued, which represents the annual interest payment made by the issuer relative to the bond's face value.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including both interest payments and the gain or loss on the principal, at the current market price.

Balance Sheet

A summary presenting the financial condition of an organization, showing the company's assets, debts, and owner's equity at a certain time.

Long-term Debt

Debt that is due to be paid back over a period greater than one year, used as a way for businesses to finance their operations or expand.