Which of the following is not a potential problem of deflation?

Question

Quizplus · Accepted Answer

Expectations of future price falls may actually lead to increased spending and investment as consumers and businesses anticipate lower prices in the future. This is because they may choose to delay spending and investment when they believe prices will increase in the future (which is the case with inflation), but they may decide to bring forward spending and investment when they anticipate lower prices (which is the case with deflation). Therefore, D is not a potential problem of deflation. A, B, and C are all potential problems of deflation.

Which of the Following Is Not a Potential Problem of Deflation