Study

Deflation: what is it?

  •   0%
  •  0     0     0

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