Deflation Is a Problem for All of the Following Reasons

question 34

Multiple Choice

Deflation is a problem for all of the following reasons except it:

• A)is often associated with large falls in asset prices.
• B)may prevent a central bank from lowering the real interest rate as much as it would like.
• C)can undermine a country's financial system.
• D)can lead to excessive increases in aggregate demand.

---

Definitions:

Psychologists

Professionals specializing in studying the mind and behavior, often providing counseling and therapy services.

Psychiatrists

Persons trained in medicine prior to doing specialized training in dealing with mental illness. This specialized training focuses on diagnosis and medical treatment that emphasize the use of pharmacological agents in managing mental disorders. Most psychiatrists attend to the medical aspects and biological foundations of these disorders, although they usually also consider psychological and environmental influences.

Psychosis Diagnosis

The identification of a mental disorder in which there is a disconnection from reality, marked by delusions, hallucinations, or disordered thinking.

Ethical Principles

Fundamental concepts that guide moral conduct, such as autonomy, beneficence, nonmaleficence, and justice, especially in fields like healthcare and research.