such as arecessionor adepression, as economic output slows and demand for investment and consumption dries up. This may lead to an overall decline in asset prices as producers are forced to liquidate inventories
If there is insufficient money supply, it may lead to the accumulation of corporate debt and eventually result in deflation throughout society. Deflation will lead to a reduction in total social investment, decrease in consumer demand, and impact on the redistribution of social income. Conceptual U...
Heavy government spending may lead to inflation. Governments can create inflation because they are able to print money. 注: 通货膨胀有很多原因,但它们都会使需求超出当下的供给能力。 沉重的政府支出可能导致通货膨胀。因为政府可以印钞票,所以政府也可以创造通胀。 When a government pays its bills by ...
The resulting delinquencies and defaults lead to debt liquidation and write-downs of bad debts by lenders, which start to eat away some of the accumulated supply of circulating credit in the economy. Banks' balance sheets become shakier, and depositors may seek to withdraw their funds as cash...
Fed weighing new actions to shore up the economy ; Concern about deflation may lead central bank to renew asset purchasesSEWELL CHAN
Deflation can lead to a decrease in aggregate demand, which can lead to a decrease in production and an increase in unemployment. Lenders may be less willing to lend money as the value of collateral falls. Borrowers may find it more difficult to repay loans as the value of their income fal...
In the business cycle, when is deflation most likely to occur? a. as GDP rises b. during a recession c. during expansion d. with low unemployment Business Cycle: It is the different phases that are observed in the course o...
Acentral bankmay use a tighter monetary policy by increasinginterest rates. Thus, people, instead of spending their money immediately, prefer to save more of it. In addition, increasing interest rates lead to higher borrowing costs, which also discourages spending in the economy. ...
Lower prices may be manna to consumers, but they can cause economists to break out in cold sweats. Their fear: that one big D (deflation) will lead to another (depression).Recent economic data suggest that the U.S. may well be heading into its first significant bout of deflation since ...
innovation of a new product, method, or idea may lead to increased production and efficiency in the economy. Producers may experience a decrease in input costs due to economies of large-scale production. Passing the lower costs and increased supply may result in a fall in prices in the ...