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Which event indicates that deflation is occurring?

2 Answers

5 votes
A savings account can suddenly buy much more than before
User Karloz
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An example of such an event can be when the Civil War ended. The country went back to the gold standard and destroyed large sums of civil war money which was useless now. This led to a major deflation because there was suddenly much less money than before and the money had higher value than before.
User Themean
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