Other Things the Same,if Prices Fell When Firms and Workers

question 40

Multiple Choice

Other things the same,if prices fell when firms and workers were expecting them to rise,then

• A)employment and production would rise.
• B)employment would rise and production would fall.
• C)employment would fall and production would rise.
• D)employment and production would fall.

---

Definitions:

Factoring Accounts Receivable

A financial transaction whereby a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.

Without Recourse

A financial term indicating that the seller of an asset is not liable if the underlying assets fail to perform as expected.

Maturity Factoring

A form of financing where a business sells its invoices to a factor at a discount for immediate cash, with the collection of funds from customers handled by the factor upon maturity.

Cash Conversion Cycle

A metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.