If the Inflation Rate Is Negative, the Price Level in an Economy

question 145

Multiple Choice

If the inflation rate is negative, the price level in an economy is

• A) falling.
• B) rising slowly.
• C) constant.
• D) rising rapidly.

---

Definitions:

Net Sales

The revenues from a company's primary activities after deducting returns, allowances, and discounts.

Working Capital Ratio

A financial metric measuring a company's ability to cover its short-term liabilities with its short-term assets.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Net Sales

the revenue generated from the sale of goods or services, after deducting returns, allowances for damaged or missing goods, and discounts.