(Consider This) Deflation is most likely to occur
A)during the expansionary phase of the business cycle.
B)during the recessionary phase of the business cycle.
C)when the central bank imposes negative nominal interest rates.
D)when the inflation premium rises above 10 percent.

Question

Quizplus · Accepted Answer

Deflation is most likely to occur during the recessionary phase of the business cycle when demand is low, leading to falling prices.

(Consider This) Deflation Is Most Likely to Occur