Other Things the Same,when the Price Level Rises More Than

question 78

Multiple Choice

Other things the same,when the price level rises more than expected,some firms will have

• A)higher than desired prices,which increases their sales.
• B)higher than desired prices,which depresses their sales.
• C)lower than desired prices,which increases their sales.
• D)lower than desired prices,which depresses their sales.

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Definitions:

Deferred Tax Liability

A tax obligation that a company owes in the future due to differences between accounting practices and tax regulations.

Depreciable Asset

An asset that loses value over time due to wear and tear or obsolescence, which can be depreciated over its useful life.

Realisation of Profit

The process by which a profit is recognized on the books once a transaction is completed and the revenue can be reliably measured.

External Party

An individual, group, or organization outside of a company that can affect or be affected by the business's activities.