How Deflation Works

by Corona Brezina

Though steadily falling prices over a prolonged period sounds like a good thing, deflation is the ultimate vicious cycle. When the money supply decreases due to tight credit, a terrible cascade of negative reactions ensues, often leading to severe economic contraction, recession, or depression. If there is too little money circulating in the economy, demand for goods drops, as do prices. If companies sell less at a lower profit, they cut back on manufacturing...

• Format: Library Binding
• Language: English
• ISBN: 1435894650
• ISBN13: 9781435894655
• Release Date: August 2010
• Publisher: Rosen Young Adult
• Length: 80 Pages
• Weight: 0.68 lbs.
• Dimensions: 0.4" x 6.8" x 9.2"
• Age Range: 12 to 17 years
• Grade Range: Grades 7 to 12