Debt deflation refers to

3. Deflation is a _____ in the money supply and/ or in the average price.

The third phase of financial crises is debt deflation, and it always occurs. ( ) A: True B: False

Which of the following best describes the formation of “desert pavement”? A: alluvial fans are eroded to form inselbergs with flat, angular rocky surfaces B: runoff and deflation carry off the fine particles of silt and clay, leaving coarser particles behind C: groundwater in an alluvial fan evaporates, leaving behind a surface layer of hard-baked mud and boulders D: deflation removes the coarse fragments leaving behind a layer of fine sediment (loess and mud)

When aggregate demand increases faster than aggregate supply, prices go up. What is this an example of? A: Demand-pull inflation B: Cost-push inflation C: Per-worker productivity D: Deflation

Archie has a savings account at a bank. If he earns 6 percent interest on his account and if there is deflation, then his purchasing power rises by more than 6 percent over the course of a year.

If this year's price level exceeds last year's, A: the inflation rate between these years has been positive. B: the inflation rate is accelerating. C: deflation is occurring. D: no relative price changes are occurring.

We can learn from the beginning of the passage that ______. A: the rich countries put all their energies into the property market B: the incomes are increasing faster and faster along with the deflation C: people always take no notice of the government policies about houses D: the inflation in a short period will not influence the house prices

If a country had deflation, A: the nominal interest rate would be greater than the real interest rate. B: the real interest rate would be greater than the nominal interest rate. C: the real interest rate would equal the nominal interest rate. D: None of the above is necessarily correct.