Excessive Inflation or Deflation

question 196

Multiple Choice

Excessive inflation or deflation

• A) interferes with the price mechanism that brings a market to equilibrium.
• B) can be beneficial in the long run.
• C) has a neutral effect on the market.
• D) has a negative effect on the economy only if traders are aware of it.

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Definitions:

Psychological Disorders

Mental disorders characterized by patterns of behavior or thought that are both dysfunctional and distressing.

Poverty Line

A threshold set by an authority that delineates the minimum level of income required to afford basic living expenses, varying by country and context.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a variety of things, not limited to one specific issue or situation.

Autonomic Nervous System

A part of the peripheral nervous system that regulates involuntary body functions, including heart rate, digestion, and respiratory rate.