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The Debt-Deflation Hypothesis Explains the Fall in Income as a Consequence

Question 10

Multiple Choice

The debt-deflation hypothesis explains the fall in income as a consequence of unexpected deflation transferring wealth _____, and that creditors have a _____ propensity to consume than debtors.


A) from debtors to creditors; smaller
B) from debtors to creditors; larger
C) from creditors to debtors; smaller
D) from creditors to debtors; larger

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