Question
Give a detailed explanation and your thoughts on these statements. Are they wrong or correct? Why? 1.Inflation reduces the money supply. 2.Deflation indicates that the
Give a detailed explanation and your thoughts on these statements. Are they wrong or correct? Why?
1.Inflation reduces the money supply.
2.Deflation indicates that the price level in a country is falling.
3.As the quantity of goods increases and the money supply remains constant, prices in our country will fall.
4.Inflation is always a bad thing.
5.Deflation is always good for businessmen in the capital.
6.Goods and services are getting more and more expensive and you still have to pay back the 100 you borrowed. Whoever borrows during inflation wins because they pay back the depreciated money.
7.Inflation occurs when there is a lot of money on the market and few goods.
8.Inflation is measured as a percentage.
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