Disinflation May Cause

question 13

Multiple Choice

Disinflation may cause:

• A) an increase in the value of gold,silver,and gems.
• B) a reduced required return demanded by investors on financial assets.
• C) increased return demanded by investors on non-financial assets.
• D) additional profits through rising inventory costs.

---

Definitions:

Deductive Validity

A property of some logical arguments such that it is impossible for the premises to be true and for the conclusion(s) to be false.

Previous Beliefs

Pre-existing opinions or convictions held before being exposed to new information or experiences.

Content Effects

The impact that the subject matter or content has on the processing, understanding, and memory of information, which can vary depending on the relevance or familiarity of the content.

Confirmation Bias

A tendency to seek only information consistent with one’s hypothesis.