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Economics · May / June 2021 · Paper 11 · Question 20

2281Inflation

What will deflation most likely lead to?

  1. Aa fall in the real value of debts
  2. Ban increase in the exchange rate
  3. Can increase in the rate of interest
  4. Dan increase in the real purchasing power of money

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Correct answer: D. an increase in the real purchasing power of money

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