Share Deflation: what is it?
Save to Folder
What is the opposite of inflation?
Growth
Deflation
What happens during deflation?
Prices increase
Prices decrease
What increases during deflation?
Prices
Purchasing power
What decreases in deflation?
Price of goods and services
The amount of money people have
Deflation usually happens during:
Festivals
Economic crises
When deflation happens, people:
Buy less
Buy more
When people buy less, suppliers:
Increase prices
Reduce prices
The goal of reducing prices is to:
Make more money
Balance supply and demand
Fiduciary currency gets its value from:
Gold or silver
Trust in the government
Fiduciary currency is usually prone to:
Inflation
Stability
The government can issue more fiduciary currency if:
It wants to stop inflation
Necessary
Deflationary currency becomes:
Less valuable
More valuable
Why does deflationary currency become more valuable?
Because supply decreases
Because supply increases
What happens to demand for deflationary currency over time?
It decreases
It increases
Bitcoin is an example of:
Deflationary currency
Fiduciary currency
The value of fiduciary currency is not tied to:
The government’s trust
Gold or precious metals
