Which of the following statements is not valid in the case of an economy suffering from deflation ?

A)
Floating-rate savers are adversely affected
B)
Bonds enjoy a bull market
C)
Fixed rate borrowers are benefited
D)
Companies tend to spend less on new capital stock

Correct Answer : Option (C) - Fixed rate borrowers are benefited


Published On : May 22, 2021
Category : Business and Economics