Which of the Following Is NOT a Consequence of Deflation

question 39

Multiple Choice

Which of the following is NOT a consequence of deflation?

• A) Deflation causes uncertainty about the future.
• B) The threat of deflation can make people reluctant to borrow for long periods.
• C) Deflation causes the real value of money to fall.
• D) Firms may be reluctant to undertake investments for fear that the prices at which they can sell their output will drop.

---

Definitions:

Poor Coordination

Refers to an inefficient alignment or integration of activities, tasks, or efforts among members of a group, team, or organization, leading to suboptimal outcomes.

Creativity

The use of imagination or original ideas to create something; inventiveness.

Team Development

The process through which a group of individuals grows to become more effective in achieving goals, often through stages of forming, storming, norming, and performing.

Storming

A stage in group development characterized by conflict and competition as team members navigate personal relationships and roles within the group.