A higher discount rate generally decreases excess reserves

Which of the following situations generally exists when deflation occurs?

A) Inflation and unemployment are both increasing. B) Inflation and unemployment are both decreasing. C) The price level is decreasing. D) The rate of inflation is falling from, for example, 10% to 3%. E) The natural rate of unemployment is zero.

Intermediate products:

a. produced domestically are not directly reflected in a nation's GDP. b. produced domestically are reflected directly in a nation's GDP. c. are imported retail products d. are goods that are purchased by the ultimate user.