Which of the Following Is Not a Potential Problem with Deflation

question 98

Multiple Choice

Which of the following is not a potential problem with deflation?

• A)Debt burdens may rise as prices fall.
• B)Asset values will fall.
• C)Unemployment rates may rise.
• D)Expectations of future price falls may cause a rise in aggregate demand.

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Definitions:

Socializing Influence

The process by which individuals assimilate the norms, values, and behaviors considered appropriate in a given society through interaction with others.

Mass Media

Various mediums of communication intended to reach a large audience, including newspapers, television, radio, and the Internet.

Functionalist

An approach in sociology and anthropology that interprets society as a structure with interrelated parts designed to meet the biological and social needs of individuals.

Workforce

The total number of people available for work, including both the employed and the unemployed, within a specific country, region, or economic sector.