Ask Question
BusinessBusiness
5 February, 05:12

Suppose there is unexpected deflation this year that reduces the aggregate price level by 10%. how does deflation affect borrowers and lenders?

+1
Answers (1)
  1. 5 February, 08:48
    0
    It would negatively affect bowers and lenders. First the dollar would be worth less which means it would buy less. This could effect interest rates to go up witch would cost borrowers more money. I believe banks wouldn't be able to loan as much money because there value would go down. Also the stock market would take a huge hit in my opinion. It would be bad all the way around
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose there is unexpected deflation this year that reduces the aggregate price level by 10%. how does deflation affect borrowers and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $32,000.
Answers (1)
How is video compression accomplished? Video compression works by making the pixel size smaller. Video compression works by removing the sound. Video compression works by smoothing the pixels.
Answers (1)
The Refining Department of SweetBeet, Inc. had 74,000, tons of sugar to account for in July. Of the 74,000 tons, 42,000 tons were completed and transferred to the Boiling Department, and the remaining 32,000 tons were 60 % complete.
Answers (1)
which are characteristics for all careers in the stem career cluster? select all that apply. a. good with customers b. work in laboratories c. work with computers d. analyze information e. develop Bridges f. design products
Answers (2)
If franco's pizza parlor knows that the marginal cost of the 500th pizza is $3.50 and that the average total cost of making 499 pizzas is $3.30, then
Answers (1)
New Questions in Business
The main function of the Federal Reserve System is to: A. Control the money supply B. Set reserve requirements of banks C. Clear checks from member banks D. Serve as the fiscal agent for the Federal government
Answers (1)
Parole violators account for more than half of prison admissions in many states. a. True b. False
Answers (1)
What is the best way to judge the cooking and holding temperatures of food?
Answers (1)
Robinson Company has 6,000 shares of 2%, $150 par, cumulative preferred stock outstanding. Robinson did not pay dividends during 2015, 2016, or 2017, but had met its preferred dividend requirements in all prior years.
Answers (1)
A business-level strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage in specific product markets. (A) True (B) False
Answers (1)
Home » Business » Suppose there is unexpected deflation this year that reduces the aggregate price level by 10%. how does deflation affect borrowers and lenders?
Sign Up Forgot Password?