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Which of the following is NOT a reason for why prices falling over time might be a bad thing? Consumers form longer-term deflationary expectations. Consumers
Which of the following is NOT a reason for why prices falling over time might be a bad thing?
Consumers form longer-term deflationary expectations.
Consumers are more likely to delay making certain purchases.
Firms might delay plans to expand their production capacity.
The purchasing power of the money consumers hold falls over time, meaning they can buy less with their money.
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