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
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