Question: Question 3 options: a ) Deflation causes their dollar profit to be less than what they have invested. The selling price of their product will
Question options:
a
Deflation causes their dollar profit to be less than what they have invested. The selling price of their product will decrease because of deflation.
b
Deflation means that they will have to recover and pay off their borrowed money for investment with the same amount of nominal dollars, but those dollars will be worth more.
c
In deflationary times, business is slow. That is why there is deflation. Thus profits will be low.
d
All of the above are correct.
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