Which of the Following Is True of De?ation

question 70

Multiple Choice

Which of the following is true of de?ation?

• A) De?ation is likely to bene?t the economy because prices have fallen, making goods more affordable.
• B) De?ation raises the real value of debt, making previously incurred debts less affordable.
• C) De?ation refers to a sustained increase in the general price level.
• D) A long period of de?ation is consistent with a high level of employment in the economy.

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