All of the following statements about deflation,except one,are true.Which is the exception?
A)It is characterized by interest rates at zero or near zero.
B)Apart from one year,it has not occurred in Canada since the Great Depression.
C)It means that a return on idle money is possible.
D)It encourages consumers to postpone major purchases.
E)It encourages large-scale investment in the economy.

Question

Quizplus · Accepted Answer

Deflation discourages investment as it decreases the value of assets and reduces the expected returns on investment. The statement "It encourages large-scale investment in the economy" is false.

All of the Following Statements About Deflation,except One,are True