A deflation refers to a situation where:
A) the inflation rate is increasing at a slower rate.
B) both inflation and the unemployment rate are increasing.
C) the inflation rate is falling.
D) both inflation and the unemployment rate are falling.
E) the inflation rate is negative.

Question

Quizplus · Accepted Answer

Deflation is characterized by a negative inflation rate, meaning the general price level of goods and services is decreasing over time.

A Deflation Refers to a Situation Where