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Which event indicates that deflation is occurring? (1 point) Responses A savings account can suddenly buy much more than before. A savings account can suddenly buy much more than before. The profits of a clothing factory increase rapidly. The profits of a clothing factory increase rapidly. The length of time it takes to pay off a home loan decreases by five years. The length of time it takes to pay off a home loan decreases by five years. A local store begins offering ice cream bars at two for $5.00 instead of three for $5.00.

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Answered by GPT-5 mini AI
A savings account can suddenly buy much more than before.

Explanation: Deflation means a general fall in prices, so the purchasing power of money rises — a given amount in a savings account buys more goods and services.