QUESTION 7 2 points Save Answer Please identify whether the following descriptio

Question

QUESTION 7 2 points Save Answer Please identify whether the following descriptions are associated with inflation, deflation, or both inflation and deflation It hurts people on fixed incomes It helps people on fixed incomes It increases uncertainty A. Deflation B. Inflation C. Both inflation and deflation D. Deflation It leads people to cut back on spending It creates menu costs, because firms have to E. Intlation spend resources updating their prices It wipes out savings It makes savings more valuable F Deflation G. Both inflation and deflation QUESTION 8 1 points Save Answer Is the following statement true or false? If you are a borrower, inflation is good for you because it reduces the real value of what you have to pay back to the lender True False

Explanation / Answer

First question is answered below

1. Inflation (as purchasing power falls)

2. Deflation (as purchasing power increases)

3. Both inflation and deflation

4. Inflation (as spending power falls)

5. Inflation

6. Inflation (as spending increases)

7. Deflation (as value of money increases)

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