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when you make a new purchase through a dspp regardless of whether you make a one time purchase or sign up to invest monthly typically you will not have any control over the respective trade date when you use a transfer company the transaction may not happen for a number of weeks basically the purchase goes through at w...
on the other hand discount brokers allow you to trade in real time so you always know the price a cardinal precept of investing is to diversify your investments so unless you are enrolled in dozens of dspps across multiple industries and internationally or have most of your investments in index funds mutual funds or ex...
what is a direct tax
a direct tax is a tax that a person or organization pays directly to the entity that imposed it examples include income tax real property tax personal property tax and taxes on assets all of which are paid by an individual taxpayer directly to the government investopedia zoe hansenunderstanding a direct taxdirect taxes...
what are examples of direct taxes
direct taxes are taxes paid directly to the party that levied them such as the irs common examples include income capital gains or property tax that a taxpayer pays to the government
what is the difference between direct tax and indirect tax
direct taxes cannot be shifted to another party and remain your responsibility to pay indirect taxes are the opposite whoever is liable for these taxes can pass on or shift them to another person or group 1
what are some examples of indirect taxes
common examples of indirect taxes include sales tax excise tax value added tax vat and goods and services tax gst often businesses get individual consumers to foot the bill and cover these costs by charging higher prices
when surfers scan the vast expanse of the ocean they are looking for the wave whose direction and pull assure them of an exhilarating ride but how do surfers know which building upsurge of water won t amount to much while others that look the same to beginners will pick them up and carry them in the answer lies in read...
the dmi helps traders determine the strength and direction of price trends developed by j welles wilder in 1978 the dmi identifies the direction in which an asset price is moving the dmi does this by comparing earlier highs and lows and drawing two lines a positive directional movement line called di and a negative dir...
when di is above di the price has more upward pressure than downward pressure conversely if di is above di the price has more downward pressure this helps traders assess the trend direction crossovers between the lines are also used as signals to buy or sell below we show you how to employ the dmi in trading compare it...
formulas for the directional movement index dmi di smoothed dm atr 1 0 0 di smoothed dm atr 1 0 0 dx di di di di 1 0 0 where dm directional movement current high ph ph previous high dm previous low current low smoothed dm t 1 1 4 dm t 1 1 4 dm 1 4 cdm cdm current dm atr average true range begin aligned text di left fra...
what does the directional movement index tell you
the dmi is primarily used to help assess trend direction and provide trade signals crossovers are the main trade signal a long trade is taken when the di crosses above the di and an uptrend could be underway meanwhile a sell signal occurs when the di instead crosses below the di 1 in such cases a short trade may be ini...
are there any other indicators like the dmi
there are several indicators that share similar similarities with the dmi particularly in their focus on trend direction strength and potential reversals these include the moving average convergence divergence and the parabolic stop and reverse
how can the dmi be made more reliable
improving confidence in the dmi involves a combination of methodological adjustments and strategic integration with other analytical tools 1 some ways to improve its reliability include adjusting the length of the period using the dmi with the adx combining the dmi with other indicators incorporating it into the analys...
what works well with the dmi
the dmi works well with other technical analysis tools to provide a more comprehensive market view integrating the dmi with other indicators can help confirm signals identify entry and exit points and improve the overall trading strategy some valuable indicators include the adx moving averages the relative strength ind...
what is dirty price
a dirty price is a bond pricing quote which refers to the cost of a bond that includes accrued interest based on the coupon rate bond price quotes between coupon payment dates reflect the accrued interest up to the day of the quote in short a dirty bond price includes accrued interest while a clean price does not under...
what is disability insurance
as its name suggests disability insurance is a type of insurance product that provides income in the event that a policyholder is prevented from working and earning an income due to a disability in the united states individuals can obtain disability insurance from the government through the social security system they ...
how disability insurance works
oftentimes insurance products will protect against a specific loss such as when a property and casualty insurance plan reimburses the policyholder for the value of stolen property however in the case of disability insurance this compensation relates to the lost income caused by a disability for example if a worker earn...
what is a disbursement
a disbursement is a payment to an individual or entity from a private or public fund a disbursement may also be a payment made on behalf of a client to a third party it may be money paid into a business operating budget the delivery of a loan amount to a borrower or a dividend to shareholders examples of disbursementsr...
when a retiree withdraws 10 of a 100 000 balance in a traditional ira account they receive a 10 000 disbursement this represents a drawdown of 10 000 or 10 from the account which results in a balance of 90 000
can a loan disbursement be negative a loan disbursement may be positive or negative a positive disbursement results in a credit to an account while a negative disbursement results in an account debit a negative disbursement may occur if financial aid funds are overpaid and later withdrawn from the student s account 10
what is the difference between a disbursement and a payment
a disbursement is a payment from a fund disbursement implies a payment has been finalized and properly recorded as a debit on the payer s side and a credit on the payee s side
what is a disbursement fee
a disbursement fee is usually a charge to cover payments made by the vendor on behalf of a customer for example fedex may pay duty and tax charges for a shipment on behalf of a customer and then add a disbursement fee to its bill to the customer to cover the payments 11the bottom linea disbursement is a payment made fr...
what is disclosure
in the financial world disclosure refers to the timely release of all information about a company that may influence an investor s decision it reveals both positive and negative news data and operational details that impact its business similar to disclosure in the law the concept is that all parties should have equal ...
what are discontinued operations
in financial accounting discontinued operations refer to parts of a company s core business or product line that have been divested or shut down and which are reported separately from continuing operations on the income statement understanding discontinued operationsdiscontinued operations are listed separately on the ...
when operations are discontinued a company has multiple line items to report on its financial statements although the business component is being shut down it still could generate a gain or loss in the current accounting period
the total gain or loss from the discontinued operations is thus reported followed by the relevant income taxes this tax is often a future tax benefit because discontinued operations often incur losses to determine the company s total net income ni the gain or loss from discontinued operations is aggregated with that of...
why are discontinued operations listed separately on the income statement
so that investors can clearly tell the profits and cash flows from continuing operations apart from activities that have ceased
how does a company report discontinued operations
a company has multiple line items to report on its financial statements regarding discontinued operations the total gain or loss from the discontinued operations is reported followed by the relevant income taxes
how can discontinued operations be reported under generally accepted accounting principles gaap
two conditions must be met
how can discontinued operations be reported under international financial reporting standards ifrs
two criteria must be met the bottom line discontinued operations is a term in financial accounting it refers to parts of a company s core business or product line that have been divested or shut down they are reported separately from continuing operations on the income statement
what is a discount
in finance and investing a discount refers to a situation when a security is trading for lower than its fundamental or intrinsic value in fixed income trading a discount occurs when a bond s price is trading below its par or face value with the size of the discount equal to the difference between the price paid for a s...
what is a discount bond
a discount bond is a security that is issued for less than its par or face value a discount bond may also be a bond that trades for less than its face value in the secondary market a bond is considered a deep discount bond if it is sold at a significantly lower price than par value usually at 20 or more a discount bond...
what is a distressed bond
a distressed bond is one that is issued by a company that is financially distressed the company may be at the point where it is close to bankruptcy these bonds come at a very steep discount but also come with a significant amount of risk to investors because there is a very big chance that the company won t live up to ...
how do zero coupon bonds work
zero coupon bonds are deeply discounted debt securities unlike other bonds these bonds do not pay investors any interest in exchange for a lower value and no interest bondholders receive the full face value of the bond when it matures for instance a company may sell a zero coupon bond with a face value of 1 000 for onl...
why would anyone want a discount bond
discount bonds are fixed income securities that are issued at a lower price than their face value since they come at a discount sometimes very deep discounts they promise a high return put simply you pay a lower price for the bond but may still get the full face value when the bond matures keep in mind that these bonds...
what is a discount broker
a discount broker is a stockbroker who carries out buy and sell orders at reduced commission rates compared to a full service broker however a discount broker doesn t provide investment advice or perform analysis on a client s behalf like a full service broker only individuals with an annual income far above average co...
do full service brokers have to be licensed
full service brokers may not need an official license but they must usually register with the securities and exchange commission sec and maintain membership in the financial industry regulatory authority finra states may also have their own additional rules 4
how much do full service brokers charge
the u s securities and exchange commission indicates that the base fees connected to an investment portfolio handled by a full service broker can range from 0 25 up to 1 this may not sound like a lot but the fees are paid annually so your cost will grow in tandem with the value of your investments 5
is it necessary to use any type of broker at all
no law says that you must use some type of broker although flying solo is generally not a good idea if you re not very knowledgeable about the industry two types of plans allow you to invest directly on your own direct stock plans dsps and dividend reinvestment plans drips both involve dealing directly with the company...
what is a discount margin dm
a discount margin dm is the average expected return of a floating rate security typically a bond that s earned in addition to the index underlying or reference rate of the security the size of the discount margin depends on the price of the floating or variable rate security the return of floating rate securities chang...
what is a discount rate
the discount rate is the interest rate the federal reserve charges commercial banks and other financial institutions for short term loans the discount rate is applied at the fed s lending facility which is called the discount window a discount rate can also refer to the interest rate used in discounted cash flow dcf an...
how the fed s discount rate works
commercial banks in the u s have two primary ways to borrow money for their short term operating needs they can borrow and loan money to other banks without the need for any collateral using the market driven interbank rate or they can borrow money for their short term operating requirements from the federal reserve ba...
how the discount rate works in cash flow analysis
the same term discount rate is used in discounted cash flow analysis dcf is used to estimate the value of an investment based on its expected future cash flows based on the concept of the time value of money dcf analysis helps assess the viability of a project or investment by calculating the present value of expected ...
what is the appropriate discount rate to use for an investment or a business project while investing in standard assets like treasury bonds the risk free rate of return generally considered the interest rate on the three month treasury bill is often used as the discount rate
on the other hand if a business is assessing the viability of a potential project the weighted average cost of capital wacc may be used as a discount rate this is the average cost the company pays for capital from borrowing or selling equity in either case the net present value of all cash flows should be positive if t...
where
here s an example to show how the discount rate works let s say you want to determine the discount rate on a certain investment using the following variables now let s use the formula above to determine the discount rate for the fractional exponent you can convert it to a decimal 1 10 dr fv pv 1 n 1dr 5 000 3 500 1 10 ...
what effect does a higher discount rate have on the time value of money
the discount rate reduces future cash flows so the higher the discount rate the lower the present value of the future cash flows a lower discount rate leads to a higher present value as this implies when the discount rate is higher money in the future will be worth less than it is today meaning it will have less purcha...
how is discounted cash flow calculated
there are three steps to calculating the dcf of an investment
how do you choose the appropriate discount rate
the discount rate used depends on the type of analysis undertaken when considering an investment the investor should use the opportunity cost of putting their money to work elsewhere as an appropriate discount rate that is the rate of return that the investor could earn in the marketplace on an investment of comparable...
what is the discount yield
the discount yield is a way of calculating a bond s return when it is sold at a discount to its face value expressed as a percentage discount yield is commonly used to calculate the yield on municipal notes commercial paper and treasury bills sold at a discount the formula for discount yield is discount yield is calcul...
what is discounted cash flow dcf
discounted cash flow dcf refers to a valuation method that estimates the value of an investment using its expected future cash flows dcf analysis attempts to determine the value of an investment today based on projections of how much money that investment will generate in the future it can help those considering whethe...
how does discounted cash flow dcf work
the purpose of dcf analysis is to estimate the money an investor would receive from an investment adjusted for the time value of money the time value of money assumes that a dollar that you have today is worth more than a dollar that you receive tomorrow because it can be invested as such a dcf analysis is useful in an...
when a company analyzes whether it should invest in a certain project or purchase new equipment it usually uses its weighted average cost of capital wacc as the discount rate to evaluate the dcf
the wacc incorporates the average rate of return that shareholders in the firm are expecting for the given year for example say that your company wants to launch a project the company s wacc is 5 that means that you will use 5 as your discount rate the initial investment is 11 million and the project will last for five...
how do you calculate dcf
calculating the dcf involves three basic steps one forecast the expected cash flows from the investment two select a discount rate typically based on the cost of financing the investment or the opportunity cost presented by alternative investments three discount the forecasted cash flows back to the present day using a...
what is an example of a dcf calculation
you have a discount rate of 10 and an investment opportunity that would produce 100 per year for the following three years your goal is to calculate the value today the present value of this stream of future cash flows since money in the future is worth less than money today you reduce the present value of each of thes...
is discounted cash flow the same as net present value npv
no it s not although the two concepts are closely related npv adds a fourth step to the dcf calculation process after forecasting the expected cash flows selecting a discount rate discounting those cash flows and totaling them npv then deducts the upfront cost of the investment from the dcf for instance if the cost of ...
what is the discounted payback period
the discounted payback period is a capital budgeting procedure used to determine the profitability of a project a discounted payback period gives the number of years it takes to break even from undertaking the initial expenditure by discounting future cash flows and recognizing the time value of money the metric is use...
when deciding on any project to embark on a company or investor wants to know when their investment will pay off meaning when the cash flows generated from the project will cover the cost of the project
this is particularly useful because companies and investors usually have to choose between more than one project or investment so being able to determine when certain projects will pay back compared to others makes the decision easier the basic method of the discounted payback period is taking the future estimated cash...
how do i calculate the payback period
the standard payback period is simply the amount of time an investment takes to recoup the initial cost it can be calculated by dividing the initial investment cost by the annual net cash flow generated by that investment
how do i calculate the discounted payback period
the discounted payback period is more accurate than the standard payback period but more difficult to calculate the first step is to estimate the expected annual cash flows from the investment as well as the discount rate the amount of value an amount of cash loses with each successive year due to inflation and the dim...
what is the decision rule for a discounted payback period
the decision rule is a simple rule to determine if an investment is worthwhile and which of several investments is most worthwhile if the discounted payback period for a certain asset is less than the useful life of that asset the investment may be approved if a business is choosing between several potential investment...
what is discounting
discounting is the process of determining the present value of a payment or a stream of payments that is to be received in the future given the time value of money a dollar is worth more today than it would be worth tomorrow discounting is the primary factor used in pricing a stream of tomorrow s cash flows
how discounting works
the coupon payments found in a regular bond are discounted by a certain interest rate they re then added together with the discounted par value to determine the bond s current value 1from a business perspective an asset has no value unless it can produce cash flows in the future stocks pay dividends bonds pay interest ...
what is a breakpoint discount
breakpoint discounts apply to class a mutual funds investors must qualify for them through purchasing these mutual fund shares and meeting a few other requirements they re volume discounts on the front end sales load that are charged to the investor they increase with the amount invested 4
what does it mean when a bond is callable
a callable bond is a municipal bond that s subject to redemption by a state or local government before its maturity date a government might do this because the bond is paying an interest rate that s higher than the market rate at the time you can determine whether a bond is callable before you commit by looking it up o...
what is a junk bond
junk bond is another name for a high yield bond these bonds pay a higher interest rate or yield because they re rated poorly by moody s and s p due to a high risk of default they are considered to be risky for investors 6the bottom linediscounting is the process of selling an asset for something less than its value a ...
what does discounts for lack of marketability mean
discounts for lack of marketability dlom refer to the method used to help calculate the value of closely held and restricted shares the theory behind dlom is that a valuation discount exists between a stock that is publicly traded and thus has a market and the market for privately held stock which often has little if a...
what is a discouraged worker
a discouraged worker is a person who is eligible for employment and can work but who is currently unemployed and has not attempted to find employment in the last four weeks discouraged workers usually have given up on searching for a job because they found no suitable employment options or failed to secure a job when t...
what are discouraged workers
discouraged workers are people who are eligible and able but not actively seeking work specifically these workers have not tried to become gainfully employed in the last four weeks and have given up on searching for work typically because nothing is suitable
how many discouraged workers are in the u s
in june 2024 there were 369 000 discouraged workers in the u s this was a significant decrease from june 2023 when there were 320 000 discouraged workers 10
why are discouraged workers not counted as unemployed
an unemployed person is defined as someone who is able and eligible to work and has been actively looking for work in the last four weeks discouraged workers are able and eligible but not currently looking for work more specifically discouraged workers have not actively looked for work in the last four weeks therefore ...
what is discrete distribution
a discrete distribution is a probability distribution that depicts the occurrence of discrete individually countable outcomes such as 1 2 3 yes no true or false the binomial distribution for example is a discrete distribution that evaluates the probability of a yes or no outcome occurring over a given number of trials ...
how you calculate a discrete probability distribution depends on your test what you re trying to measure and how you measure it for instance if you re flipping a coin twice the possible combinations are
because you re flipping the coin twice and there are two possible outcomes there are four possibilities each of the results represents one quarter of the possibilities the ht and th combinations are each one quarter and essentially the same thing representing one half of the results therefore the probability is that on...
what are the types of discrete distribution
the most common discrete distributions used by statisticians or analysts include the binomial poisson bernoulli and multinomial distributions others include the negative binomial geometric and hypergeometric distributions
what are the 2 requirements for a discrete probability distribution
the probabilities of random variables must have discrete as opposed to continuous values as outcomes for a cumulative distribution the probability of each discrete observation must be between 0 and 1 and the sum of the probabilities must equal one 100
how do you know if a distribution is discrete
the data are discrete if there are only a set array of possible outcomes e g zero one or only integers
what is a continuous distribution
unlike a discrete distribution a continuous probability distribution can contain outcomes that have any value including indeterminant fractions a normal distribution for instance is depicted by a bell shaped curve with an uninterrupted line covering all values across its probability function
what is a discrete probability model
a discrete probability model is a statistical tool that takes data following a discrete distribution and tries to predict or model some outcome such as an options contract price or how likely a market shock will be in the next five years the bottom linediscrete probability distributions are graphs of the outcomes of te...
what is discrete distribution
a discrete distribution is a probability distribution that depicts the occurrence of discrete individually countable outcomes such as 1 2 3 yes no true or false the binomial distribution for example is a discrete distribution that evaluates the probability of a yes or no outcome occurring over a given number of trials ...
how you calculate a discrete probability distribution depends on your test what you re trying to measure and how you measure it for instance if you re flipping a coin twice the possible combinations are
because you re flipping the coin twice and there are two possible outcomes there are four possibilities each of the results represents one quarter of the possibilities the ht and th combinations are each one quarter and essentially the same thing representing one half of the results therefore the probability is that on...
what are the types of discrete distribution
the most common discrete distributions used by statisticians or analysts include the binomial poisson bernoulli and multinomial distributions others include the negative binomial geometric and hypergeometric distributions
what are the 2 requirements for a discrete probability distribution
the probabilities of random variables must have discrete as opposed to continuous values as outcomes for a cumulative distribution the probability of each discrete observation must be between 0 and 1 and the sum of the probabilities must equal one 100
how do you know if a distribution is discrete
the data are discrete if there are only a set array of possible outcomes e g zero one or only integers
what is a continuous distribution
unlike a discrete distribution a continuous probability distribution can contain outcomes that have any value including indeterminant fractions a normal distribution for instance is depicted by a bell shaped curve with an uninterrupted line covering all values across its probability function
what is a discrete probability model
a discrete probability model is a statistical tool that takes data following a discrete distribution and tries to predict or model some outcome such as an options contract price or how likely a market shock will be in the next five years the bottom linediscrete probability distributions are graphs of the outcomes of te...
what is a discretionary expense
a discretionary expense is a non essential expense discretionary expenses are costs without which businesses or households can survive as such they are defined as being wants rather than expenses that are needed this means a business or household is still able to maintain itself even if all discretionary consumer spend...
when times get tough and short term cash flow issues emerge managers and individuals often try to weed out any unnecessary costs discretionary expenses are normally the first to go because stopping them is unlikely to have a major impact on a business or household
corporate discretionary expenses are usually linked to the promotion of a company s market position buying the raw materials used to produce goods is usually considered essential spending money on employee training programs is not usually considered essential individuals may also find times when they need to consider c...
what constitutes a discretionary expense is subjective as such it may differ considerably among individuals and businesses
for example a stable well established company could probably get away with slashing its advertising budget for a while if the need arises a new company facing hardship on the other hand would probably need to make cutbacks elsewhere being mindful that boosting exposure and getting its name out there is imperative to ke...
how to budget for discretionary expenses
it may be necessary for households and businesses to cut back on certain expenditures in response to decreases in income during tough economic times that s why it s a good idea to track discretionary expenses separately from essential ones so that it is easy to see how costs can be reduced one helpful budgeting tactic ...
what are discretionary funds
discretionary funds is a term used to describe the money an individual or business has left over to spend on non essential goods and services this money is left over after an individual household or organization pays for essential costs for instance governments may use discretionary funds for small scale projects after...
what s the difference between discretionary and fixed expenses
discretionary expenses are expenses paid for by individuals or businesses that aren t essential to their day to day lives or operations these costs may not be predictable and can change over time fixed expenses on the other hand are costs that are incurred regularly these are predictable which means households and busi...
what does discretionary income mean
the term discretionary income refers to the total income left after a household or business pays for necessities including taxes housing groceries and utilities this type of income is used to maintain a certain standard of living or operations as such discretionary income can be used to pay for things like vacations lu...
what is discretionary income
discretionary income is the amount of an individual s income that is left for spending investing or saving after paying taxes and paying for personal necessities such as food shelter and clothing discretionary income includes money spent on luxury items vacations and nonessential goods and services because discretionar...
how is discretionary income calculated
discretionary income is a subset of disposable income or part of all the income left over after you pay taxes from disposable income deduct all necessities and obligations like rent or mortgage utilities loans car payments and food etc once you ve paid all of those items whatever is left to save spend or invest is your...
what is considered a good level of discretionary income
this is somewhat a matter of lifestyle however many experts agree that around 10 30 of your take home after tax pay should consist of discretionary income the so called 50 20 30 rule suggests that 50 of your net income goes towards living expenses 20 to savings or investments and 30 to discretionary spending 2
how is discretionary income looked at for student loans
if you are looking at federal student loans or student loan repayment plans the u s government will calculate your eligibility based on discretionary income however the government defines discretionary income as your annual gross after tax income less than 150 of the federal poverty line which will depend on your state...
what is discretionary investment management
discretionary investment management is a form of investment management in which buy and sell decisions are made by a portfolio manager or investment counselor for the client s account the term discretionary refers to the fact that investment decisions are made at the portfolio manager s discretion this means that the c...
how discretionary investment management works
discretionary investment managers demonstrate their strategies using a systematic approach that makes it easier to report results and for investment strategies to be exercised in a specific way investments are not customized or tailored to a client rather investments are made according to clients strategies in other wo...
what are diseconomies of scale
diseconomies of scale happen when a company or business grows so large that the costs per unit increase it takes place when economies of scale no longer function for a firm with this principle rather than experiencing continued decreasing costs and increasing output a firm sees an increase in costs when output is incre...
what is disequilibrium
disequilibrium is a situation where internal and or external forces prevent market equilibrium from being reached or cause the market to fall out of balance this can be a short term byproduct of a change in variable factors or a result of long term structural imbalances disequilibrium is also used to describe a deficit...
what if the market price for wheat was p1 at this price consumers are willing to purchase more wheat q2 at a lower price on the other hand since the price is below the equilibrium price suppliers will provide a smaller amount of wheat q1 to sell as the price may be too low to cover their marginal costs of production in...
since resources are not allocated efficiently the market is said to be in disequilibrium in a free market it is expected that the price would increase to the equilibrium price as the scarcity of the good forces the price to go up reasons for disequilibriumthere are a number of reasons for market disequilibrium sometime...
when a country s current account is at a deficit or surplus its balance of payments bop is said to be in disequilibrium a country s balance of payments is a record of all transactions conducted with other countries during a given time period its imports and exports of goods are recorded under the current account sectio...
the us uk and canada have large current account deficits likewise when exports are greater than imports creating a current account surplus there is a disequilibrium china germany and japan have large current account surpluses a balance of payments disequilibrium can occur when there is an imbalance between domestic sav...
how is disequilibrium resolved
disequilibrium is a result of a mismatch between the market forces of supply and demand the mismatch is generally resolved through market forces or government intervention in the example of the labor market shortage above the excess labor supply situation can be corrected either through policy proposals that address un...
when market equilibrium remains out of balance for a period of time prices can become overly depressed or inflated which can have real negative ramifications on markets and the broader economy market actors will be incentivized to try and restore equilibrium by buying and bidding up underprices goods or securities and ...
disequilibrium is often caused by an imbalance in supply vs demand at times disequilibrium can spill over from one market to another for instance if there aren t enough transport companies or resources available to ship coffee internationally then the coffee supply for certain regions could be reduced affecting the equ...
what is disguised unemployment
disguised unemployment exists when part of the labor force is either left without work or is working in a redundant manner such that worker productivity is essentially zero it is unemployment that does not affect aggregate output an economy demonstrates disguised unemployment when productivity is low and too many worke...
what is disinflation
disinflation is a temporary slowing of the pace of price inflation and is used to describe instances when the inflation rate has reduced marginally over the short term understanding disinflationdisinflation is commonly used by the federal reserve fed to describe a period of slowing inflation it should not be confused w...