__________ describes real increases in debt burdens caused by falling incomes and prices.
A)Debt deflation
B)Debt inflation
C)Real income depreciation
D)Real income inflation

Question

Quizplus · Accepted Answer

Debt deflation occurs when there is a decrease in aggregate demand in the economy, causing a fall in prices and incomes. This results in an increase in the real burden of debt as the debt remains the same while the income used to service it falls.

__________ Describes Real Increases in Debt Burdens Caused by Falling