Mr. Smith borrows ＄500 now and pays file money hack next year when prices have doubled, then how much will he be paying back in terms of real purchasing power measured by the money value of this year.

A．Deflation means that prices all are falling.
B．Fixed-income receivers can benefit much from inflation.
C．Inflation occurs much more titan deflation.
D．Even in inflation, prices of some goods may be falling

A．Inflation.
B．Deflation.
C．How to define inflation and deflation.
D．How inflation and deflation cause changes in income distribution.