Problem
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?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.