A collapse in the national banking system of Lasia has resulted in a condition where prices are declining.This condition is known as:
A)disinflation.
B)deflation.
C)contra inflation.
D)overproduction.

Question

Quizplus · Accepted Answer

Deflation is a general decline in the level of prices of goods and services in an economy, which occurs due to factors such as a contraction in the money supply, a decrease in demand for goods and services, or an increase in the supply of goods and services. In this case, the collapse in the national banking system has likely resulted in a contraction in the money supply, leading to a decline in prices. Disinflation refers to a slowdown in the rate of inflation, while contra inflation and overproduction are not relevant to the given scenario.

A Collapse in the National Banking System of Lasia Has