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Question

Describe the problems caused because of deflation.

How to deal with deflation?

Describe the problems caused because of inflation.

How to deal with inflation?

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Solution Preview

1. Deflation leads to falling price of the commodities that encourages people not to buy products as they think that the price of the commodity going to drop further.

2. It helps in increasing the price of the money which ultimately leads to increase in the 

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