Suppose that you expected a 20 percent inflation rate over, Microeconomics

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Suppose that you expected a 20 percent inflation rate over

Question: 1. Suppose that you expected a 20 percent inflation rate over the next year. How would this expectation alter your behavior? What would you do differently? Explain.

2. Deflation is the opposite of inflation. Is deflation good or bad? List the winners and losers from an unexpected deflation. Why would each group gain or lose?

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