Steadily Improving Improvements in Technology, Other Things Being Equal, Will

question 101

Multiple Choice

Steadily improving improvements in technology, other things being equal, will result in

• A) no change in the price level and steadily increasing output.
• B) persistent deflation
• C) steadily rising price level (inflation) and steadily increasing output.
• D) a steadily falling price level with no change in output.

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Definitions:

Horizontal Analysis

A financial analysis technique that compares line items in the financial statements over a period of time to identify trends and changes.

Liquidity Ratio

A financial metric used to determine how easily a company can pay off its short-term liabilities with its liquid assets.

Acid-test Ratio

A financial metric that evaluates a company's ability to pay off its current liabilities with its most liquid assets.

Debt to Assets Ratio

A financial ratio that indicates the proportion of a company's assets that are financed by debt.