In the short run,a decrease in consumption growth will cause the inflation rate to:
A) increase.
B) decrease.
C) remain unchanged.
D) become unpredictable.

Question

Quizplus · Accepted Answer

A decrease in consumption growth means that consumers are spending less, which reduces demand for goods and services. This decrease in demand would lead to a decrease in prices, resulting in a decrease in the inflation rate.

In the Short Run,a Decrease in Consumption Growth Will Cause