The situation when the price of most goods and services are falling over time is called:

A. inflation.
B. deflation.
C. a boom.
D. disinflation.

Answer: B

Economics

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If I own a share of stock in IBM, I own

a. only the right to vote in elections of corporate directors b. a claim to a share of IBM's assets and earnings as well as the right to demand annual dividend payments c. the right to demand annual dividend payments as well as the right to vote in elections of corporate directors d. only the right to demand annual dividend payments e. a claim to a share of IBM's assets and earnings as well as the right to vote in elections of corporate directors

Economics

Which of the following is not a legitimate reason for maintaining federal budget deficits? a. Deficits boost domestic saving, which in the long run could promote economic growth. b. Deficits help reduce the size and duration of recessions through automatic stabilizers. c. Deficits are used to finance capital projects

d. Public spending through deficit financing wins support from the voters. e. A federal budget deficit stimulates aggregate demand.

Economics