Which of the following summarizes the economic view on deflation select one: a. deflation is neither good, nor bad and the price level should be allowed to cycle through inflation and deflation as part of the normal business cycle b. deflation is impossible in a capitalist society c. deflation is good for the economy because as prices fall people can buy more goods which creates jobs d. deflation is harmful, can cause mass bankruptcies and foreclosures, can trigger a deflationary spiral, and thus should be avoided

Jaguar has full manufacturing costs of their s-type sedan of £22,803. they sell the s-type in the uk with a 20% margin for a price of £27,363. today these cars are available in the us for $55,000 which is the uk price multiplied by the current exchange rate of $2.01/£. jaguar has committed to keeping the us price at $55,000 for the next six months. if the uk pound appreciates against the usd to an exchange rate of $2.15/£, and jaguar has not hedged against currency changes, what is the amount the company will receive in pounds at the new exchange rate?