One In the News article titled "Deflation: There Are Bargains Everywhere.Here's Why That Could Be a Problem" suggests that deflation
A)Harms economic growth due to lower profits,more layoffs,and less spending that create a self-reinforcing cycle.
B)Harms the economy because bankruptcies decrease.
C)Harms sellers only,but not buyers since they get better deals without worries of job losses.
D)Results in higher interest rates that further slow the economy.

Question

Quizplus · Accepted Answer

The article states that deflation can harm economic growth through a self-reinforcing cycle of lower profits, layoffs, and decreased spending. This affects both sellers and buyers, as lower spending leads to reduced demand for goods and services, resulting in lower profits and potential job losses.

One in the News Article Titled "Deflation: There Are Bargains