Why is inflation generally preferred over deflation?
A. Inflation makes goods cheaper
B. Deflation helps people save more
C. Inflation encourages spending and investment
D. Deflation increases salaries

Question

MaximoRykei · Answer

The correct answer is letter C. Moderate inflation encourages consumers to buy now rather than later and motivates businesses to invest. Deflation, on the other hand, can lead to reduced spending, job losses, and economic slowdown.

Answered by MaximoRykei | 2025-05-17

Why is inflation generally preferred over deflation? A. Inflation makes goods cheaper B. Deflation helps people save more C. Inflation encourages spending and investment D. Deflation increases salaries

Answer (1)

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Why is inflation generally preferred over deflation?
A. Inflation makes goods cheaper
B. Deflation helps people save more
C. Inflation encourages spending and investment
D. Deflation increases salaries

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