Deflation Is

question 144

Multiple Choice

Deflation is:

• A)a sustained fall in the aggregate price level.
• B)a sustained increase in the aggregate price level.
• C)a steady,unchanging aggregate price level.
• D)a sustained fall in the exchange rate.

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Definitions:

Amortization Expense

The process of allocating the cost of an intangible asset over its useful life for accounting and tax purposes.

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends, accumulated over the company’s life.

Beginning Period

This refers to the starting point or the first date of a financial reporting period.