Which of the Following Is True of De?ation

question 70

Multiple Choice

Which of the following is true of de?ation?

• A) De?ation is likely to bene?t the economy because prices have fallen, making goods more affordable.
• B) De?ation raises the real value of debt, making previously incurred debts less affordable.
• C) De?ation refers to a sustained increase in the general price level.
• D) A long period of de?ation is consistent with a high level of employment in the economy.

Understand the benefits of collaborative study for exam preparation.

Recognize the importance of perspective and constructive outlook towards evaluations and feedback.

Understand the need to prepare for a variety of question types on tests.

Develop a constructive approach to analyzing and using test results for improvement.

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Definitions:

Weber's Law

A principle stating that the change in a stimulus that will be just noticeable is a constant ratio of the original stimulus.

Stimuli

External agents, objects, or events that invoke reactions or responses from organisms, including physical, chemical, and biological factors.

Sensory Adaptation

A neurological phenomenon by which individuals become less sensitive to unchanging environmental stimuli over time.

Neural Impulses

Electrical signals that travel along neurons, facilitating communication within the brain and between the brain and the body.