Economics A-Level
Debt and wealth effects
What Debt and wealth effects means in Economics A-Level, as defined for AQA.
Definition of Debt and wealth effects
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Reference: AQA
Deflation increases the real value of debt, making mortgages harder to service, while cash savers benefit as their purchasing power rises.
Topics that use Debt and wealth effects
- Inflation and deflation (AQA A-Level)
Related terms
- Aggregate demand
- Cost-push inflation
- Deflation
- Deflationary policies
- Demand-pull inflation
- Depreciation
- Disinflation
- Inflation
Using Debt and wealth effects in the exam
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