The Canadian Consumer Price Index Fell from 9

question 104

Multiple Choice

The Canadian consumer price index fell from 9.2 in 1929 to 7.1 in 1933.Consequently,a Canadian who saved Canadian dollars in a piggybank from 1929 to 1933 received a windfall gain equivalent to a real rate of return of _______ on his piggybank savings.Such a high real return on cash hoarding suggests that savers would have ________ incentive to make their money available for productive investments during periods of ________.

• A) 17.4%;little;inflation
• B) 18.1%;strong;deflation
• C) 22.8%;little;deflation
• D) 21.5%;strong;inflation
• E) 29.6%;little;deflation

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Definitions:

Profit Margins

Financial metrics indicating the percentage of revenue that remains as profit after accounting for costs and expenses.

Industry Life Cycle

The industry life cycle describes the progression of an industry over time through phases including introduction, growth, maturity, and decline, each affecting competitive dynamics and strategic considerations for businesses.

Highest Return

The maximum gain or profit achieved from an investment over a specific period.

Software Applications

Software applications are computer programs or a set of programs designed to perform specific tasks for users, ranging from productivity and communication to entertainment.