If the Economy Unexpectedly Went from Inflation to Deflation

question 31

Multiple Choice

If the economy unexpectedly went from inflation to deflation,

• A)both debtors and creditors would have reduced real wealth.
• B)both debtors and creditors would have increased real wealth.
• C)debtors would gain at the expense of creditors.
• D)creditors would gain at the expense of debtors.

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Definitions:

Discontinued Operations

Components of a business that have been sold or otherwise disposed of, or will be disposing of, which are reported separately in financial statements.

Major Geographical Area

A significant region or territory within which a company operates and reports financial performance.

Disposal

The process of getting rid of an asset or substance.

Product Line

A group of related products manufactured or sold by a company, often characterized by their function or target market.