Which of the Following Is Not a Potential Problem of Deflation

question 12

Multiple Choice

Which of the following is not a potential problem of deflation?

• A) Debt burdens may rise as prices fall.
• B) Asset values will fall.
• C) Unemployment rates may rise.
• D) Expectations of future price falls may cause a rise in aggregate demand.

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Definitions:

Obstacles

Challenges, hurdles, or barriers that impede progress or achievement of objectives.

Challenging Situation

A scenario that poses difficulties or obstacles, demanding solutions or adaptations to overcome it.

Risky Decisions

Choices made under conditions of uncertainty that have the potential for significant positive or negative outcomes.

Simple Obstacles

Easily identifiable and straightforward hindrances or challenges that can impede progress or achievement of a goal.