Economics 0455 · IGCSE · Inflation and deflation

Inflation and deflation — practice question

Why is deflation harmful to an economy?

  • AIt reduces business confidence.
  • BIt reduces export competitiveness.
  • CIt reduces purchasing power.
  • DIt reduces real incomes.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI