Assume That a Firm Has $100 Million in Real Assets

question 77

Multiple Choice

Assume that a firm has $100 million in real assets and $90 in real liabilities.If the price level falls by ten percent,the real value of liabilities would ________.

• A)fall to $81 million
• B)change,but more information must be provided to determine the exact movement
• C)remain unchanged
• D)rise to $99 million

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Definitions:

Goods

Tangible products or commodities that can be bought, sold, or traded to satisfy wants or needs.

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A sweet confectionery made from sugar or chocolate, often flavored or filled with fruits, nuts, etc.