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Which of the Following Statements Is NOT True

Question 43

Multiple Choice

Which of the following statements is NOT true?


A) Deflation refers to a situation in which the price level is falling.
B) When the price level is falling there is always an incentive to delay spending and so there is a negative effect on economic activity.
C) Cutting interest rates to zero to fight deflation may not work because the opportunities for profitable investment are likely to be limited.
D) Deflation is good for workers because with wages falling there will be plenty of employment opportunities.

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