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.

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Definitions:

Trading Investment

Securities bought and held primarily for selling in the near term to generate income on short-term price differences.

Carrying Amount

The value at which an asset is recognized on the balance sheet after deducting accumulated depreciation or amortization.

Investment Account

A financial account held at a financial institution that is used for the purpose of holding and managing investments such as stocks, bonds, mutual funds, and other assets.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence over that company but does not fully control it.