Multiple Choice
When prices fall in Germany, what is the effect on nominal debt and consumption in Germany?
A) Nominal debt remains unchanged, but the real value of debt falls, and this encourages consumers to spend more.
B) Nominal debt remains unchanged, but the real value of debt rises, and this discourages consumption.
C) Nominal value of debt falls, and this encourages consumers to spend more.
D) Nominal value of debt rises, and this encourages consumers to spend less.
Correct Answer:
Verified
Correct Answer:
Verified
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