From 1929 to the Early 1930s, the Prices of Consumer

question 15

Multiple Choice

From 1929 to the early 1930s, the prices of consumer goods actually decreased. Economists call this phenomenon deflation. The rate of deflation during this period was around 7% per year. Suppose this rate of deflation persisted over 20 years. What would be the cost after 20 years of an item that cost $500 initially?

• A)$23.25
• B)$61.66
• C)$271.90
• D)$117.12

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Definitions:

Monoamines

Neurotransmitters, including catecholamines (epinephrine, norepinephrine, and dopamine) and serotonin, that have been implicated in the mood disorders.

Neurotransmitters

Chemical substances in the nervous system that transmit signals between neurons or from neurons to muscles.

Depression

A disorder of the mind known for sustained feelings of unhappiness or apathy towards activities, which notably hinders normal daily operations.

Learned Helplessness

A condition in which an individual learns to feel powerless and unable to affect the outcome of events after repeated exposure to uncontrollable and adverse situations.