The best known example of debt deflation came during
A)the Great Depression.
B)the 1970s.
C)the 1980s.
D)the 1990s.

Question

Quizplus · Accepted Answer

The best known example of debt deflation occurred during the Great Depression of the 1930s, when a large number of banks and businesses failed, resulting in a decrease in the money supply and a widespread drop in prices. This led to a vicious cycle of further economic contraction, as falling prices and incomes led to increasing levels of debt and bankruptcies.

The Best Known Example of Debt Deflation Came During