The Deflation of the 1930s Impacted the U

Multiple Choice

The deflation of the 1930s impacted the U.S.economy because it led some consumers to ________ and because it ________.

A) postpone purchases while they waited for prices to fall even lower; increased the burden on borrowers
B) demand higher wages in anticipation of prices eventually rising again; increased manufacturing since firms could afford to hire more labor
C) borrow more money since money was now cheap; reduced the amount of money consumers would have to pay back on their outstanding loans
D) increase purchases to take advantage of the falling prices; increased the burden on lenders