Which of the Following Statements About Deflation Is True

question 158

Multiple Choice

Which of the following statements about deflation is true?

• A)Economists generally agree that deflation is good for consumers and the economy as a whole.
• B)Economists fear deflation because it could lead to a wave of bankruptcies and a downward spiral.
• C)Deflation would reduce unemployment, but it could encourage business investment.
• D)Consumers will increase their spending if they expect deflation to continue.

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Definitions:

Anxious

Experiencing worry, unease, or nervousness, typically about an imminent event or something with an uncertain outcome.

Stages Of Development

Distinct phases in the life cycle of an organism or among the sequential changes during the development of an organism or a society.

Abraham Maslow

Abraham Maslow was an American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

James-Lange

A theory of emotion proposing that emotions occur as a result of physiological reactions to events.