Title: QUIZ: Inflation, Deflation, and Disinflation -- The Federal Reserve and You
Course: Kelly's Copy-Export Course > Section: Inflation, Deflation, and Disinflation -- The Federal Reserve and You

Q: Deflation is a period
- of generally high unemployment and high interest rates.
- of generally low unemployment and high interest rates.
- where prices fall across the economy.
- where prices rise across the economy.
A: where prices fall across the economy.

Q: During the Great Depression, deflation helped contribute to
- rising prices and falling wages.
- less demand and growing inventories.
- higher unemployment and higher rates of production.
- growing business investment and higher stock prices.
A: less demand and growing inventories.

Q: During periods of deflation, people often ___________ to buy goods and services, because they expect prices to continue _____________. This can have negative repercussions for the overall economy.
- wait; rising
- wait; falling
- rush; rising
- rush; falling
A: wait; falling

Q: Disinflation, or a decrease in the inflation rate, is
- a sharp rise in prices.
- a steady rise in prices.
- a quick fall in prices across the board.
- a slowing of the rate by which prices are increasing.
A: a slowing of the rate by which prices are increasing.