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.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values from the mean.

ACT Type Score

A numerical measurement that represents a student's achievement on the ACT test, which is commonly used for college admissions in the United States.

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most occurrences take place around the average, and fewer instances occur as you move away from the center.

Standard Deviation

A measure of the dispersion or variability within a set of data points, indicating how much individual data points differ from the mean of the data set.