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What are the reasons for deflation?

Updated: 8/23/2023
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Wiki User

10y ago

Best Answer

Economics:

During Deflation the price of goods and commodities goes down. A Deflation is the situation exactly opposite to inflation. Usually during a deflation there is a significant shortage of money and credit.

You can find instances of Deflation in the world history during Wars...

Geology:

The lifting and removal of loose material by wind. (In the desert, resulting in desert pavement)

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14y ago
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Wiki User

7y ago

geologists define deflation as the process by which wind removes surface materials.

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Wiki User

11y ago

an increase in demand

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Anonymous

Lvl 1
3y ago

Prices have gone high enough that most people are no longer able and willing to pay for goods and services. A+

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Q: What are the reasons for deflation?
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