Deflation Can Cause the Economy's Aggregate Demand Curve to Shift

question 121

Multiple Choice

Deflation can cause the economy's aggregate demand curve to shift inward because debt contracts are:

• A) adjusted for inflation.
• B) not adjusted for inflation.
• C) adjusted for changes in the interest rate.
• D) not adjusted for changes in the interest rate.

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Definitions:

Enlightened Self-interest

A philosophy or behavior motivated by understanding that one's own best interest is served by acting in the best interest of others or a community.

Societal Problems

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