Deflation Is a Period of

question 19

Multiple Choice

Deflation is a period of

• A)rising unemployment
• B)declining unemployment
• C)rising prices
• D)falling prices

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Definitions:

Leverage

The use of borrowed funds to increase one's investment capacity and potentially increase the rate of return on equity.

Interest Rate

The percentage charged on a loan or paid on deposits, representing the cost of borrowing or the income from lending.

Pre-Tax Cost

The expense or cost associated with an activity or asset before taxes are deducted.

Debt-Equity Ratio

A measure used to evaluate a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.