what is the typical outcome when deflation is present in the economy? a. lower corporate profits...

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Question

what is the typical outcome when deflation is present in the economy? a. lower corporate profits...

what is the typical outcome when deflation is present in the economy?

a. lower corporate profits

b. lower unemployment rates

c. higher short-term interest rates

d. higher spending and investment

business economics

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Answer 1

Answer #1

Answer is A. Lower corporate profits.

When economy have deflation it means price level is low , unemployment is high, demand is low. So corporate profits will be lower because there is less demand.

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Answer 2

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what is the typical outcome when deflation is present in the economy? a. lower corporate profits...

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