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poizon [28]
2 years ago
14

Why was deflation so bad for the economy?

History
1 answer:
laiz [17]2 years ago
7 0

Answer:

Economists fear deflation because falling prices lead to lower consumer spending, which is a major component of economic growth. Companies respond to falling prices by slowing down their production, which leads to layoffs and salary reductions.

Explanation:

i am sorry if it wrong

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