When Prices Are Falling, What Term Do Economists Use

question 28

Multiple Choice

When prices are falling, what term do economists use?

• A) disinflation
• B) deflation
• C) contraction
• D) inflation

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Definitions:

Expected Return

The anticipated return on an investment over a given period, factoring in all possible outcomes weighted by their probabilities.

Growth Rate

The rate at which a company's earnings, sales, or dividends increase over a given period, usually expressed as a percentage.

Annual Dividend

A yearly payment made by a corporation to its shareholders, often derived from its earnings.

Required Rate

The minimum acceptable return on an investment, often used in capital budgeting and investment analysis.