When an Economy Experiences Deflation, Consumption Will

question 83

Multiple Choice

When an economy experiences deflation, consumption will:

• A) decrease, because people will want to wait for prices to drop before spending.
• B) increase, because people will want to wait for prices to drop before spending.
• C) decrease, because people will lose value in their savings.
• D) increase, because people will lose value in their savings.

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Definitions:

Retrieval

The process of accessing and bringing into consciousness information stored in memory.

Shopping List

A list of items to be purchased at a store, often used as a reminder and to organize shopping trips.

Recall

The mental process of retrieving information from the past.

Recognition

The cognitive process of identifying and acknowledging the presence or existence of something.