A period when the buying power of money increases, as in the 1930s, is called:
AIndexation
BDeflation
CInflation
DStagnation
Answer & Solution
Correct answer: B. Deflation
1. Prices fall instead of rising.
2. That is deflation.
3. It also followed the 1920-21 recession.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 8, Inflation (CC BY 4.0)._
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