Deflation a falling price level, which would mean a negative rate of inflationwas a very real fear during the early stages of the Great Recession.
Deflationâ€â€a falling price level, which would mean a negative rate of inflationâ€â€was a very real fear during the early stages of the Great Recession. Using a supply and demand analysis of bonds, explain the effect of expected deflation on the interest rate. A graph is required for this part of the question . Make sure that you label the graph â€â€axes, curves, and significant pointsâ€â€appropriately. […]