Multiple Choice
When an economy experiences deflation, investment will:
A) decrease, because businesses will not take out loans that will increase in value over time.
B) increase, because businesses will take out loans that will increase in value.
C) decrease, because businesses will spend cash instead of borrowing it.
D) increase, because businesses will spend cash instead of borrowing it.
Correct Answer:
Verified
Correct Answer:
Verified
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