Deflation on a Wide Scale Resulting in a Decline in Prices

question 17

Multiple Choice

Deflation on a wide scale resulting in a decline in prices across a broad spectrum of goods and services:

• A) Has been a characteristic of the 1990s economy.
• B) Occurs about once each decade.
• C) Almost always results from inflation.
• D) Has not occurred in the U.S. since the 1930s.
• E) Always follows periods of inflation.

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Definitions:

Equity Income

Income earned by an investor through dividends or distributions from equity investments or ownership interests in companies.

Annual Review

A comprehensive evaluation or analysis of a company's activities and financial performance over a one-year period.

Net Income

The income a business retains after subtracting all costs and taxes from its gross revenue.