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  2. Topic
    Business
  3. Study Set
    Economics-Macroeconomics
  4. Exam
    Exam 12: The Business Cycle, Inflation, and Deflation
  5. Question
    During a Deflation, the Nominal Interest Rate Is ________ and the Velocity
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During a Deflation, the Nominal Interest Rate Is ________ and the Velocity

Question 296

Question 296

Multiple Choice

During a deflation, the nominal interest rate is ________ and the velocity of circulation ________.


A) low; decreases
B) low; increases
C) high; decreases
D) high; increases

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