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stira [4]
3 years ago
13

What causes deflation?

History
1 answer:
Inessa05 [86]3 years ago
6 0

Answer:

1. Money Supply

One of the main causes of deflation is a fall in money supply but more specifically, a decline in the circulation of money would lead to less money going around.

2. Debt

After a credit bubble like the one experienced in the United States in 2008, has led to people seeking to pay off debts. This led to a decline in the circulation of money.

3. Lending

Borrowed money is generally spent in an economy, which increases the circulation of money. So when credit tightens and loans are harder to qualify for, this can negatively affect the circulation of money.

Explanation:

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Why did new problems about the spread of slavery<br> come up after the Missouri Compromise?
Sphinxa [80]

Answer:

The Missouri Compromise created new problems dealing with slavery since it divided America even further and let in Missouri as a slave state and Maine as a free state which balanced out the US Senate. This led to more tension between people who believed and did not believe in slavery. It ultimately led to Bleeding Kansas and pushed America toward the Civil War by adding wood to fire the fire of sectionalism in the US and creating much more tension between the states.

Explanation:

Hope this helps you out and good luck with your studies! :)

3 0
3 years ago
How does increased productivity lead to lower prices for consumers ?
Alexandra [31]
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3 years ago
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4 years ago
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