14. Deflation is a falling average level of prices or a negative rate of inflation. If deflation is the converse/opposite of inflation a. There would be no income redistribution effects of deflation. b. Creditors would benefit at the expense of debtors. c. Those on fixed incomes would benefit at everyone else's (rest of world's) expense. d. Both b) and c) are correct.

14. Deflation is a falling average level of prices or a negative rate of inflation. If deflation is the converse/opposite of inflation a. There would be no income redistribution effects of deflation. b. Creditors would benefit at the expense of debtors. c. Those on fixed incomes would benefit at everyone else's (rest of world's) expense. d. Both b) and c) are correct.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 22CTQ: Inflation rates, like most statistics, are imperfect measures. Can you identify some ways that the...

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