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