A Country Is Said to Be Experiencing Deflation When

question 68

Multiple Choice

A country is said to be experiencing deflation when

• A)prices of most goods and services are rising over time.
• B)prices of most goods and services are falling over time.
• C)total output is rising over time.
• D)total output is falling over time.

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Definitions:

Common-Size Statements

Financial statements that are expressed as a percentage of a certain figure, allowing for easier comparison across time periods and companies by standardizing the data.

Percentage Of Change

A mathematical calculation used to determine the percentage increase or decrease of a value over a period of time.

Quick Assets

Those assets— mainly cash, accounts receivable, and notes receivable—that can be easily turned into cash.

Current Liabilities

Obligations that will come due within one year or within the operating cycle, whichever is longer.