The biggest problem caused by a deflation is that
A) prices fall. B) wages fall.
C) interest rates rise. D) people cannot repay their debts.
D
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Setting a fair price means
a. c and e b. lowering the price until the monopolist says "unfair" c. pricing at the point where average fixed and average variable costs sum to the price d. imposing unreasonable restrictions on the price making capability of competitive firms e. pricing as if the market were actually competitive
In economics, the term "scarcity" refers to the fact that
a. everything really worthwhile costs money. b. even in wealthy countries like the United States, some people are poor. c. no society can produce enough to satisfy fully the desires of people for goods and services. d. sometimes shortages of a good arise when its price is set below the market equilibrium.