When an Economy Experiences Deflation, Consumption Decreases Because

question 28

Multiple Choice

When an economy experiences deflation, consumption decreases because:

• A) people will wait for prices to drop before spending.
• B) shoe-leather costs increase.
• C) savings accounts lose value.
• D) the prices of imports increase.

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Definitions:

Excitement

A state of heightened arousal and enthusiasm, often triggered by anticipation or the experience of something novel or challenging.

Reappraisal

A cognitive process that involves changing one’s interpretation of a situation in order to alter its emotional impact.

Horror Movie

A film genre designed to frighten, scare, or disturb its audience through suspense, violence, or shock.

Scared

A feeling of fear or anxiety triggered by a perceived threat or danger.