Disinflation May Cause

question 13

Multiple Choice

Disinflation may cause:

• A) an increase in the value of gold,silver,and gems.
• B) a reduced required return demanded by investors on financial assets.
• C) increased return demanded by investors on non-financial assets.
• D) additional profits through rising inventory costs.

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Definitions:

Commodity Futures Market

A financial exchange where people can trade commodity futures contracts, which are agreements to buy or sell a specified amount of a commodity at a set price at a future date.

Flood Control System

Infrastructure designed to manage or prevent the adverse effects of floods.

Annual Premium

The amount of money that must be paid per year to maintain an insurance policy or similar financial products.

Coastal Town

A settlement located along or near a coast, often characterized by a maritime economy and culture.