inflation and interest rates L10 M2 economics: Consequences of price deflation:

Question

Consequences of price deflation:

Dakota howells · Accepted Answer

1.	Holding back on spending
2.	Debts increase
3.	Real cost of borrowing increases
4.	Lower profit margins
5.	Confidence and saving
6.	Income distribution
7.	Exporters become more competitive.

inflation and interest rates L10 M2 economics

Consequences of price deflation:

1. Holding back on spending 2. Debts increase 3. Real cost of borrowing increases 4. Lower profit margins 5. Confidence and saving 6. Income distribution 7. Exporters become more competitive.

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