According to the Quantity Theory of Money,deflation Will Occur If

question 228

Multiple Choice

According to the quantity theory of money,deflation will occur if the

• A)money supply is less than real GDP.
• B)money supply is more than real GDP.
• C)money supply grows at a slower rate than real GDP.
• D)money supply grows at a faster rate than real GDP.

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Definitions:

Debt-To-Equity Ratio

This measures a company’s financial leverage by dividing its total liabilities by its stockholders' equity, indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Balance Sheet

An overview statement that provides details on a company's assets, liabilities, and stockholders' equity at a precise moment.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, culminating in its net income or loss.

Debt-To-Equity Ratio

An economic indicator reflecting the comparative levels of debt and shareholders' equity utilized in financing a company's assets.