When an economy experiences deflation,consumption:
A)will decrease,because people will want to wait for prices to drop before spending.
B)will increase,because people will want to wait for prices to drop before spending.
C)will decrease,because people will lose value in their savings.
D)will increase,because people will lose value in their savings.

Question

Quizplus · Accepted Answer

When an economy experiences deflation, the prices of goods and services decrease. This can cause people to delay their purchases in anticipation of lower prices in the future. As a result, consumption decreases. This behavior is known as "hoarding" and it can exacerbate deflationary pressures in the economy.

When an Economy Experiences Deflation,consumption