From 1929 to the early 1930s, the prices of consumer goods actually decreased. Economists call this phenomenon deflation. The rate of deflation during this period was around 7% per year. Suppose this rate of deflation persisted over 20 years. What would be the cost after 20 years of an item that cost $500 initially?
A)$23.25
B)$61.66
C)$271.90
D)$117.12

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The Answer of From 1929 to the early 1930s, the prices of consumer goods actually decreased. Economists call this phenomenon deflation. The rate of deflation during this period was around 7% per year. Suppose this rate of deflation persisted over 20 years. What would be the cost after 20 years of an item that cost $500 initially?
A)$23.25
B)$61.66
C)$271.90
D)$117.12

From 1929 to the Early 1930s, the Prices of Consumer