With reference to the risks associated with persistently low inflation in a developing economy like India, consider the following statements.
- Very low inflation can increase the real burden of debt and interest payments for firms and households.
- Persistently low inflation may dampen private investment by encouraging firms to postpone spending decisions.
- Low inflation automatically indicates strong aggregate demand and improved capacity utilisation in the economy.
- Disinflation can adversely affect MSMEs because wages tend to be downward sticky while product prices face competitive pressures.
Which of the statements given above are correct?