A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called
A) debt deflation.
B) moral hazard.
C) insolvency.
D) illiquidity.
Answer: A
A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called
A) debt deflation.
B) moral hazard.
C) insolvency.
D) illiquidity.