A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called

A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called

A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called



A) debt deflation.
B) moral hazard.
C) insolvency.
D) illiquidity.


Answer: A