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Why does Debt-Deflation lead to a contraction in the money supply? Group of answer choices People begin to default on their debt and that money
Why does Debt-Deflation lead to a contraction in the money supply? Group of answer choices People begin to default on their debt and that money disappears. People begin to replace their debts with cash holdings, pulling money out of the supply. People begin paying down debts and stop taking out new debt, reducing total borrowing. People begin to buy more goods with cash rather than on credit, increasing the demand for money
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