Deflation Leads to Winners and Losers; for Example

question 136

Multiple Choice

Deflation leads to winners and losers; for example:

• A) mortgage holders lose, but banks awaiting mortgage payments benefit.
• B) landlords lose, but people paying rent gain.
• C) savings account holders lose, but the banks gain.
• D) bond and stock holders lose, but the brokerage company gains.

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Definitions:

Received

Refers to any amount of money received by a party or business, usually in the context of payments for goods or services.

Annually

Pertaining to an event or activity that occurs once every year.

New Home Prices

The selling prices of newly constructed homes currently on the market.

Cost

The amount of money required to purchase goods or services or the value consumed in the production of goods or services.