Question

Deflation Group of answer choices increases incomes and enhances the ability of debtors to pay off their debts. increases incomes and reduces the ability of debtors to pay off their debts. decreases incomes and enhances the ability of debtors to pay off their debts. decreases incomes and reduces the ability of debtors to pay off their debts.

Answer 1

decreases incomes and reduces the ability of debtors to pay off their debts.

Step-by-step explanation:

The deflation refers to the decline in the value of the level of the price of the goods and services . It arise when the inflation rate is below 0 percentage i.e 0%

So at the time of deflation , the income should also be dropped down plus it also reduced the debtor ability to pay off their debts

Hence, the first option is correct