When Inflation Is Negative It

question 47

Multiple Choice

When inflation is negative it:

• A) raises the demand for investment.
• B) increases the positive output gap.
• C) has no effect on the unemployment rate.
• D) increases the growth of money.
• E) is called disinflation.

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Definitions:

Service Business

A type of business that provides intangible products, such as expertise, time, or activities, to customers rather than physical goods.

Manufacturing Business

A company engaged in the production of goods by processing raw materials into finished products.

Merchandising Business

A type of business that purchases goods for resale to customers, making profits from the markup over the cost of goods sold.

Limited Liability Company

An organizational form blending the direct tax system of a sole proprietorship or partnership with the reduced liability features of a corporation.