Ask Question
BusinessBusiness
3 November, 19:27

Which of the following is a problem with deflation?

A. There is no problem with deflation; falling prices are good for the economy.

B. Stopping it will cause a recession.

C. It raises the real cost of debt repayment.

D. It causes people to pay more taxes.

+2
Answers (1)
  1. 3 November, 20:43
    0
    Answer:C - It raisesthe real cost of debt repayment

    Explanation: Deflation is a persistent fall in general price level.

    When there's deflation, the interest rate rises and this increases the cost of debt repayment.

    Deflation is usually associated with a recessionary period where there is a negative GDP and high level of unemployment. Deflation isn't a postive occurrence.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following is a problem with deflation? A. There is no problem with deflation; falling prices are good for the economy. B. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which option do you choose to prevent a slide from displaying during a presentation?
Answers (1)
How can your sense of social structure affect your work with patients
Answers (1)
Joe : "i think the key additional information you need to know in deciding whether the doctor should keep the medical practice open 9 hours per day rather than 8 hours is the amount of profit she is currently making while being open 8 hours.
Answers (1)
Procter & Gamble's June 30, 2016, financial statements reported the following (in millions) : Cash, beginning of year $ 6,836 Cash, end of year $ 7,102 Cash from operating activities $15,435 Cash from investing activities $ (5,575) What did Procter
Answers (1)
Which type of lien is the deed of trust on a property?
Answers (1)
New Questions in Business
Explain the following statement:" What goes up, must come down"
Answers (1)
The previous year's 4th quarter ending inventory of 700 units meets the minimum requirement. The expected production in the current 2nd Quarter is: Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Expected Sales 7,000 5,000 8,000
Answers (2)
Jessi ships various perishable flowers from her greenhouses near St. Louis to florists thousands of miles away in cities such as San Antonio, Seattle, and Hartford.
Answers (1)
How can you estimate the total sales volume you can expect in your location?
Answers (1)
Don executes a will leaving half of his farm to his spouse Elsie and the rest to his sons, Frank and Greg, in equal shares. The will disinherits a third son, Hal. Don and Elsie divorce, but Don dies before changing his will.
Answers (1)
Home » Business » Which of the following is a problem with deflation? A. There is no problem with deflation; falling prices are good for the economy. B. Stopping it will cause a recession. C. It raises the real cost of debt repayment. D.
Sign Up Forgot Password?