Deflation Is

question 58

Multiple Choice

Deflation is

• A)hyperinflation.
• B)a constant rate of inflation.
• C)a slow-down in the rate of inflation.
• D)zero inflation.
• E)a decline in the average price level

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Definitions:

Debt/Equity Ratio

A financial ratio that measures the relative proportion of shareholders’ equity and debt used to finance a company’s assets.

Capital Investment

Funds invested in a firm or enterprise for the purpose of furthering its business objectives, including acquiring assets and launching new ventures.

Liquidating Dividend

A payment made by a corporation to its shareholders from its capital rather than its earnings, often signaling the winding down or dissolution of the company.

Cash Payment

A transaction in which goods or services are paid for with physical currency or through an immediate electronic funds transfer.