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Question Help The debt-deflation process is the process of that can increase the severity of an economic downturn. The debt-d the options
ess is the process of that can increase the sew ess contributed to the the real intere rising prices of goods and services ri
process of that can increase the severity of an economic de buted to the severity of the Great Depression by the real interes
Question Hel omic downturn. real value of debts, which the burden on borrowers and led to increased decreased 2 WX w
the burden on borrowers and led to more fewer
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Answer #1

1. Increasing bankruptcy and defaults.
2. Increasing.
3. Increased.
4. More.

As due to more defaults, the banks NPA rises, which in turn increases the cost of capital for the bank. This increases the interest rate. Due to more interest rate, it creates a burden for other borrowers- which lead to more loan defaults.

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