Business, 04.10.2020 06:01 610055470

For several decades in the late nineteenth century, the price level in the United States declined. Was this likely to have helped or hurt U. S. farmers who borrowed money to buy land? A. Deflation was good for farmers because the value of their debt stayed the same while the price of their products fell. B. Deflation was bad for farmers because the value of their debt stayed the same while the price of their products rose. C. Deflation was bad for farmers because the value of their debt stayed the same while the price of their products fell. D. Deflation was good for farmers because the value of their debt stayed the same while the price of their products rose. Does your answer depend on whether the decline in the price level was expected or unexpected? A. The answer does not depend on whether deflation was expected. If deflation was expected, the interest rate may have stayed sufficiently low to compensate. B. The answer depends on whether deflation was expected. If deflation was expected, the interest rate may have stayed sufficiently high to compensate. C. The answer depends on whether deflation was expected. If deflation was expected, the interest rate may have stayed sufficiently low to compensate. D. There is no correct answer.

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