Question

The people described spent their money during different time periods. Label each of their scenarios as to whether they bought their goods during a time of inflation, deflation, or price stability. Peter is a compulsive gamer. He decides to buy World of Warcraft, all of its expansions, Starcraft 2, a PS3, a Wii, and an Xbox 360, since prices in general have been rising at an alarming rate.Melissa decides to start her own personal library by amassing a private collection of books and magazines about world religions, cooking, comics, and economics. As she reads an issue of The Economist, she discovers that overall price levels have changed only 0.01% in the past two years, and decides it does not matter whether she starts the project now or later. Linda postpones her wedding even though most food prices and most service prices were dropping this year, which would help keep the cost of the wedding down. Out of these individuals, whose money gained the most value during their time period?

Answer 1

Linda money gained the most value during their time period.

Step-by-step explanation:

Peter is a habitual gamer - Inflation

Melissa chooses to begin her own - later - Price Stability

Linda postpones - down - Deflation

A reliable ascent in costs is swelling, a reduction is flattening practically no change implies value solidness.

Expansion diminishes the estimation of cash while price Stability will implies no adjustments in the genuine estimation of cash.

Answer 2

Check the explanation

Step-by-step explanation:

Peter is a compulsive gamer...- Inflation

Melissa decides to start her own....later- Price Stability

Linda postpones....down-Deflation

Reason

A consistent rise in prices is inflation, a decrease is deflation little or no change means price stability

Linda

Reason

Inflation decreases the value of money whereas price stability will means no changes in the real value of money.