inflation and interest rates L10 M2 economics: Economic impact of a period of deflation;

Question

Economic impact of a period of deflation;

Dakota howells · Accepted Answer

1.	Real interest rates rise
2.	Real level of debt rises
3.	Pressure for higher wages
4.	Declining business profits
5.	Rise in cyclical unemployment 
6.	Improved price competitiveness

inflation and interest rates L10 M2 economics

Economic impact of a period of deflation;

1. Real interest rates rise 2. Real level of debt rises 3. Pressure for higher wages 4. Declining business profits 5. Rise in cyclical unemployment 6. Improved price competitiveness

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