Multiple Choice
What effect does deflation have on consumption and investment?
A) Deflation increases the rate of both consumption and investment.
B) Deflation slows the rate of both consumption and investment.
C) Deflation slows the rate of investment but increases the rate of consumption.
D) Deflation causes firms and households to consume more and save less.
Correct Answer:
Verified
Correct Answer:
Verified
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