A prolonged period of unanticipated deflation is most likely to
redistribute wealth from creditors to debtors.
increase the real burden of outstanding debt for household and corporate borrowers.
reduce the real interest rate on existing fixed-rate loans.
encourage consumers to accelerate purchases of durable goods.
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.