In which capacity does a person stand to gain from deflation ?
Correct answer: A. As a pensioner
- A. As a pensioner
- B. As a debtor
- C. As an entrepreneur
- D. As an equity-holder
Explanation
Deflation increases the real value of fixed nominal income, so a pensioner can buy more goods with the same pension. Debtors and entrepreneurs generally suffer because the real burden of debt and repayments rises.
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