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  3. Study Set
    Macroeconomics Study Set 48
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    Exam 16: Inflation, Disinflation, and Deflation
  5. Question
    If There Is Too Much Deflation
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If There Is Too Much Deflation

Question 116

Question 116

Multiple Choice

If there is too much deflation:


A) people will switch from money to real assets.
B) the nominal interest rate will be constrained by the zero interest rate bound.
C) lenders will be harmed.
D) aggregate demand will increase.

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