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Test: AP Macroeconomics
1. | Deflation, the increase in value of a currency over time, is much rarer than inflation. Although it can seem like a good thing, what is a problem caused by deflation? |
Wages decrease faster than prices.
Consumers' purchasing power increases.
Savings are worth more.
It causes the value of debt to increase over time, harming borrowers.
Mahan
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The University of Texas at Austin, Bachelor of Science, Chemical Engineering. The University of Texas at Austin, Bachelor of ...
Catherine
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Siena College, Bachelor in Arts, American Studies. SUNY at Albany, Master of Arts, History.
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