The situation where the buying power of money in terms of goods and services increases is called:_____

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22-07-2022
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The situation where the buying power of money in terms of goods and services increases is called:_____

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rafikiedu01 rafikiedu01 · Answer 1 · 2022-07-31T19:50:07+02:00

The situation where the buying power of money in terms of goods and services increases is called deflation

In economics, deflation is a general decline in the price level of goods and services. Deflation occurs when inflation falls below 0% (negative inflation). Inflation depreciates a currency over time, while sudden deflation increases it. As a result, more goods and services can be purchased with the same currency than before. Deflation is different from disinflation, which is a slowdown in the rate of inflation. H. Inflation is declining but still positive.

Economists generally consider sudden deflationary shocks to be a problem in the modern economy. This is because the real value of debt increases, especially if deflation occurs unexpectedly. Deflation can also exacerbate the recession and lead to a deflationary spiral.

Learn more about deflation here: https://brainly.com/question/13562161

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