Statement I: Deflation and Disinflation Mean Exactly the Same Thing

question 363

Multiple Choice

Statement I: Deflation and disinflation mean exactly the same thing.
Statement II: If last year's rate of inflation was 6%,that would mean that the price of every good or service went up by 6% for last year.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Information Search

The process consumers undergo to gather facts and opinions about various options before making a purchasing decision.

Problem Recognition

The initial stage of the buying process where a consumer identifies a need or problem that can be satisfied by purchasing a product or service.

Cognitive Dissonance

The mental unease felt by a person when they simultaneously possess conflicting beliefs, ideas, or values.

Internal Search

The process by which consumers use their own memory and knowledge to identify possible choices in purchasing decisions.