Which of the following is true?

Select one:

a. When disinflation occurs, investors are less likely to purchase stocks and bonds, and companies will find it difficult to obtain financing.

b. Profitability ratios are distorted by inflation because sales are stated in current dollars and inventory is stated in historical dollars.

c. When inflation occurs, the purchasing power of the dollar rises with the price level.

d. Falling prices usually lead to higher after-tax income for companies.

e. None of the above.