n 18 ed 18. (1) Stage three of financial crises involves debt deflation, which happens follow price deflation and increase company's debt burden. (II) Most financial crises will lead to debt deflation, as the central banks are concerned of inflation during recession, and they always try to make deflation happen during recessions. ut of ove flag Select one: a. (1) is true, (II) false. O b. (1) is false, (II) true. c. Both are true. O d. Both are false