Which of the Following Is a Difference Between Inflation and Deflation

question 4

Multiple Choice

Which of the following is a difference between inflation and deflation?

• A) The Federal Reserve buys government securities when inflation is a concern, whereas the Federal Reserve sells government securities when deflation is a concern.
• B) Inflation increases the unemployment rate, whereas deflation decreases the unemployment rate.
• C) A high level of inflation is bad for the economy, whereas a high level of deflation signifies a healthy economy.
• D) Inflation is a period of rising average prices across an economy, whereas deflation is a period of falling average prices across the economy.

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Definitions:

Learning Deficits

Impairments in the ability to understand or process information, which can affect learning capabilities and academic performance.

Punishment

The imposition of a penalty as retribution for an offense, with the intention of discouraging undesirable behavior.

Positive Outcomes

Favorable or beneficial results achieved after a process or event, such as improved health, successful problem-solving, or achieving personal goals.

Discipline

The practice of training to improve strength or self-control, often through the enforcement of rules.