Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

Which statement about variations in price levels is correct?

  • AAnyone on a fixed income has rising real income during deflation.
  • BGovernment revenue from indirect taxes falls during inflation.
  • CProducers prefer deflation to inflation.
  • DSavers prefer index-linked savings when there is deflation rather than inflation.

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