Deflation has many consequences. Which of the following is not one of them? Expectations of future price falls may cause a rise in demand for goods and services. Consumer demand for goods decreases, causing a decrease in the production of goods and services. Debt burdens may rise as prices fall. Asset values will fall. It may lead to an economic downturn.
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Step 1: Expectations of future price falls may cause a rise in demand for goods and services - This is a consequence of deflation as consumers anticipate lower prices in the future and therefore increase their current demand for goods and services. Show more…
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