Disinflation Occurs When

question 59

Multiple Choice

Disinflation occurs when:

• A) the inflation rate is negative.
• B) the inflation rate is 2 percent or less.
• C) the inflation rate goes above ten percent.
• D) the rate of inflation declines.

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Definitions:

Magazine Subscription

A payment made in exchange for receiving regular copies of a magazine, journal, or other periodical publication.

Payment

The transfer of money, goods, or services in exchange for a product, service, or to fulfill a legal obligation.

Depreciation

A method of accounting that distributes the expense of a physical asset across its lifespan.

Fixed Asset

Long-term tangible property that a firm owns and uses in producing its income and is not expected to be consumed or converted into cash in short-term.