Use the Following to Answer the Next Question

question 36

Multiple Choice

Use the following to answer the next question:
-Which of the points shown in the diagram are at the same potential?

• A)2 and 5
• B)2,3,and 5
• C)1 and 4
• D)1 and 5
• E)2 and 4

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Definitions:

Deflation

Deflation is a decrease in the general price level of goods and services in an economy over a period, indicating negative inflation.

Money Demand Curve

A graphical representation illustrating the relationship between the quantity of money demanded and the interest rate, showing how they vary inversely.

Inflation Rate

The annual rate at which the cost of goods and services rises within an economy, reflecting a growth in price levels over time.

Price Level

An indicator of the mean cost of goods and services within an economy at a particular moment.