If an Economy Is Experiencing Deflation, a Decrease in the Price

question 196

Multiple Choice

If an economy is experiencing deflation, a decrease in the price level, then the most advantageous actions would be

• A)borrowing money at a fixed interest rate and buying a house.
• B)borrowing money at a fixed interest rate and buying land.
• C)keeping money in a checking account.
• D)keeping your wealth in gold and other precious metals.

---

Definitions:

Dreams

A series of thoughts, images, and sensations occurring in a person's mind during sleep.

Postural Muscles

Muscles that are used to maintain body posture and balance, often working to hold the body stable in stationary positions and during movement.

EEG

Electroencephalography, a noninvasive method to record electrical activity of the brain via electrodes placed on the scalp, used in the diagnosis and monitoring of neurological disorders.

Brain Activity

The electrical and chemical processes occurring within the brain that enable thinking, feeling, and functioning.