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For several decades in the late 19th century, the price level in the United States declined. Was thislikely to have helped or hurt U.S. farmers who borrowed money to buy land? Does your answerdepend on whether the decline in the price level was expected or unexpected? Briefly explain.

Respuesta :

ammary456

A) For several decades in the late 19th century, the price level in the United States declined. Deflation was bad for farmers because the value of their debt stayed the same while the price of their products fell.

B) The answer depends on whether deflation was expected. If deflation was expected, the interest rate may have stayed sufficiently low to compensate

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