中等ECON-INFL-004
Which statement about deflation is correct?
A. A fall in the price of one brand of rice is deflation
B. A sustained fall in the general price level raises the real burden of a fixed nominal debt✓ 答案
C. Deflation means the linked exchange rate has been abolished
D. Debtors always gain when the price level falls
解說
Deflation is a sustained fall in the general price level, not a fall in one price. Fixed nominal debts become heavier in real terms, so debtors lose. It is not a statement about the currency board.