The deflation of the 1930s impacted the U.S. economy because it ...

[maychende]

The deflation of the 1930s impacted the U.S. economy because it led some consumers to ________ and because it ________.
 
  A) demand higher wages in anticipation of prices eventually rising again; increased manufacturing since firms could afford to hire more labor
  B) increase purchases to take advantage of the falling prices; increased the burden on lenders
  C) postpone purchases while they waited for prices to fall even lower; increased the burden on borrowers
  D) borrow more money since money was now cheap; reduced the amount of money consumers would have to pay back on their outstanding loans

Question 2

Long lags associated with the legislative process in implementing fiscal policy make it more difficult to use than monetary policy.
 
  Indicate whether the statement is true or false

[Yixagurpuldink]

Answer to Question 1

C

Answer to Question 2

TRUE