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givi [52]
3 years ago
14

In the business cycle, when is "deflation" most likely to occur? (5 points)

Social Studies
1 answer:
pishuonlain [190]3 years ago
3 0
In economics, deflation can be described as a decrease in the general price level of goods and services or currency appreciation with respect to the same goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy. This allows one to buy more goods and services than before with the same amount of money.
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Answer:

Select the correct statement concerning LIFO liquidations from the following.

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d. LIFO liquidations seldom distort nets income and may result in substantial tax payments.

Explanation:

LIFO liquidation refers to the practice of selling or issuing of older merchandise stock or materials in a company's inventory. Therefore, under the LIFO method, the latest purchased or produced goods are removed and expensed first. And so, the old inventory costs remain on the inventory valuation method.

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