If you were a creditor you would prefer

Name: If you were a creditor you would prefer
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Deflation increases the real value of money over time, meaning the amount of goods or services that can be purchased with a given amount of money increases. For creditors, this is beneficial because the money they are repaid will have more purchasing power than the money they lent out, assuming the nominal interest rate remains the same.

If You Were a Creditor You Would Prefer