Secular Deflation

question 186

Multiple Choice

Secular deflation

• A)has been a serious problem during the last three decades in the United States.
• B)although present, has not been a problem during the last three decades in the United States.
• C)has not been present in the United States since 1959.
• D)cannot exist in a capitalistic economy.

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Definitions:

Cash Dividend

A cash dividend is a payment made by a company out of its profits to shareholders in the form of cash, usually on a quarterly basis.

Equipment Purchase

The acquisition of physical assets like machinery and technology for use in operations, often considered a capital expenditure.

Direct Method

A method of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.

Operating Activities

Activities that relate directly to the business's primary operations and functions, including sales, distribution, and production, influencing the day-to-day profitability.