If There Is Too Much Deflation

question 116

Multiple Choice

If there is too much deflation:

• A) people will switch from money to real assets.
• B) the nominal interest rate will be constrained by the zero interest rate bound.
• C) lenders will be harmed.
• D) aggregate demand will increase.

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Definitions:

Upper Fence

A method in statistics used to identify potential outliers, determined by adding 1.5 times the interquartile range to the third quartile.

Box and Whisker Plot

A graphical representation used in statistics to display the distribution of datasets. It shows the median, quartiles, and possible outliers in the data.

Five-number Summary

A descriptive statistic that provides a quick overview of a dataset through five key numbers: minimum, first quartile, median, third quartile, and maximum.

Symmetric

A characteristic of an object or distribution in which it is identical in size, form, and arrangement on both sides of a dividing line or plane.