Which of the Following Is an Example of Deflation

question 7

Multiple Choice

Which of the following is an example of deflation?

• A) Prices growing at 2%.
• B) Prices were growing at 3% last year and 2% this year.
• C) Prices are growing at 0%.
• D) Prices are falling.

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Definitions:

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders’ equity of a company at two or more different points in time, used to analyze trends in financial position.

Cash Dividends

Cash dividends are payments made by a corporation to its shareholder members. It is the share of profits distributed in the form of cash.

Operating Activities

Activities related to the day-to-day business operations, such as selling products or services, which generate most of a company's cash flow.

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and equity of an entity at two or more points in time for comparison purposes.