When the Overall Level of Prices in the Economy Is

question 11

Multiple Choice

When the overall level of prices in the economy is increasing, what is the economy experiencing?

• A) economic growth
• B) inflation
• C) unemployment
• D) deflation

---

Definitions:

Fair Market Price

The price of a good or service that is agreed upon by both buyer and seller, under no pressure, in an open and competitive market.

Redeemed

The act of exchanging something, such as a bond or coupon, for value, often for cash or goods.

Unamortized Discount

The portion of a bond discount that has not yet been expensed to interest expense over the bond's life.

Carrying Value

The book value of an asset as reflected in a company's financial statements, calculated as the original cost minus accumulated depreciation.