Which of the Following Is Not a Potential Problem of Deflation

question 12

Multiple Choice

Which of the following is not a potential problem of deflation?

• A) Debt burdens may rise as prices fall.
• B) Asset values will fall.
• C) Unemployment rates may rise.
• D) Expectations of future price falls may cause a rise in aggregate demand.

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Definitions:

Financial Data

Quantitative information about an entity's financial performance, including balance sheets, income statements, and cash flow statements.

Current Ratio

A financial metric that evaluates a corporation's capacity to meet its obligations due within a year by comparing its current assets to its current liabilities.

Financial Data

Information related to the financial activities of an entity, including income statements, balance sheets, cash flow statements, and more.

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings distributed to shareholders as dividends.