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

Multiple Choice

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

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