Generally, a firm's asset deflation mostly reflects a decline in the productive capacity of assets and therefore reduces potential output.
<h3>What is an
asset deflation?</h3>
This refers to the general reduction in the value of firm's assets such as lands, homes, office, machine etc \.
Most time, the firm's asset deflation mostly reflects a decline in the productive capacity of assets and therefore reduces potential output.
Therefore, the Option A is correct.
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Answer:
9.85%
Explanation:
Data provided in the question:
Initial Offer price = $23.45
Current NAV = $22.28
Dividends and capital gains distributions over the year = $1.09 per share
Now,
Holding period return
= [Current NAV + Dividends and capital gains distributions - Initial Offer price ] ÷ Initial Offer price
= [ $24.67 + $1.09 - $23.45 ] ÷ $23.45
= $2.31 ÷ $23.45
= 0.0985
or
= 0.0985 × 100%
= 9.85%
Answer:
D. Deflation
Explanation:
"Consumer Price Index" <em>(CPI)</em> measures the changes in the weighted average of prices of a market basket (consisting of consumer goods and services). It tells the<u> cost of living for every consumer. </u>
"Inflation" refers to the sustained increase of prices of goods and services while "deflation" refers to the sustained decrease of prices of goods and services.
In the situation above, the CPI is considered lower than before, thus <u>deflation</u> must have occurred during the second six-year period. It shows a <u>negative inflation rate.</u>
So, this explains the answer.
Icecream, the demand for icecream increases as the temprature becomes hotter but decreases as the temprature cools down
The Great Depression, the recession, I don't know the other one.
