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Which of the following statements regarding inflation and deflation is correct? Select one: O a. None of the listed answers is correct. O b. Inflation
Which of the following statements regarding inflation and deflation is correct? Select one: O a. None of the listed answers is correct. O b. Inflation transfers wealth from lenders to borrowers. O c. Falling prices benefit consumers and are therefore always good for the economy. O d. Borrowers benefit from deflation, as the value of their debt decreases in real terms. Oe. Inflation makes it difficult for consumers and firms to attain the message about scarcity of resources (sent by relative prices), and is therefore always bad for the economy
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