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.

---

Definitions:

Abnormal Functioning

Impaired or deviant operation of a system or organ, differing from normal or expected functioning.

Idiographic Data

Information that pertains to specific, individual cases or entities, highlighting unique aspects rather than generalizations.

Nomothetic Data

Information that pertains to general laws or principles governing behavior, used in contrast to idiographic data focusing on individual cases or instances.

Nervous Breakdown

A colloquial term for a stressful situation in which someone becomes temporarily unable to function normally in day-to-day life.