When Does Deflation Occur

question 105

Multiple Choice

When does deflation occur?

• A) when the rate of price increases slows down
• B) when average prices increase more than 50 percent per month
• C) when prices decrease
• D) when productivity decreases

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Definitions:

Glucagon

A hormone produced by the pancreas that raises blood glucose levels, serving as a counter-regulatory mechanism for insulin.

Pancreas

A gland in the digestive and endocrine system that produces insulin and digestive enzymes.

Pituitary Gland

Endocrine gland attached to the hypothalamus by the infundibulum; also called hypophysis.

Sphenoid Bone

A butterfly-shaped bone at the base of the skull that participates in forming the floor of the cranium, holding the brain.