How can deflation affect people and their decisions? Choose three correct answers.It can cause job losses.It can lead to increasing prices.It can improve the economy.It can lead to a decrease in income.It can lead people to reduce spending.

Deflation is a sustained fall in the general price level. It can lead people to delay purchases because they expect prices to fall further, reducing spending; lower sales can then reduce businesses’ income and lead to job losses. So the correct answers are “It can cause job losses,” “It can lead to a decrease in income,” and “It can lead people to reduce spending.” Deflation means prices are falling, not increasing.

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