Which Statement Is TRUE About Inflation and Deflation

question 7

Multiple Choice

Which statement is TRUE about inflation and deflation?

• A) Both are good for the economy.
• B) Inflation is always good for the economy and deflation is always bad for the economy.
• C) Inflation is always bad for the economy and deflation is always good for the economy.
• D) Both inflation and deflation can pose problems for the economy.

---

Definitions:

Idea Creation

The process of generating, developing, and communicating new concepts or innovations.

Cause-Effect Relationship

A connection between events or conditions where one directly triggers the outcome of the other.

Unique Pattern

A distinctive or particular model, sequence, or form that sets something apart from others.

Dominant Values

Are the main or most widely accepted values, norms, or ethical standards in a society or organization.