When Prices Are Falling,economists Say That There Is

question 3

Multiple Choice

When prices are falling,economists say that there is

• A)disinflation.
• B)deflation.
• C)a contraction.
• D)an inverted inflation.

---

Definitions:

Scenario Analysis

Scenario Analysis is an analytical method used to examine different possible future events or scenarios and their potential impacts on decision outcomes.

Positive Net Present Value

An indicator that an investment is expected to generate more cash than its initial cost, leading to a profitable outcome.

Marginal Tax Rate

The marginal tax rate is the rate at which an additional dollar of income would be taxed, highlighting how much of the next dollar earned will go to taxes.

Financial Break-even Point

The level of earnings before interest and taxes (EBIT) where the company's total revenues equals its total expenses.