ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Lenders are helped by unanticipated disinflation or deflation because the money they get paid back has more purchasing power than the money they expected it to be when they loaned it out.

Detailed explanation-2: -Key Takeaways In the short-term, deflation impacts consumers positively because it increases their purchasing power, allowing them to save more money as their income increases relative to their expenses.

Detailed explanation-3: -Deflation is associated with an increase in interest rates, which will cause an increase in the real value of debt. As a result, consumers are likely to defer their spending.

Detailed explanation-4: -Consumers will benefit from deflation in the short term, because the prices of goods will reduce. This not only increases the purchasing power of the consumers but also helps the consumers to save more.