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Deflation: what is it?

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