When inflation falls,people
A)make less frequent trips to the bank and firms make less frequent price changes.
B)make less frequent trips to the bank while firms make more frequent price changes.
C)make more frequent trips to the bank while firms make less frequent price changes.
D)make more frequent trips to the bank and firms make more frequent price changes.

Question

Quizplus · Accepted Answer

When inflation falls, people make fewer trips to the bank because they experience smaller increases in the cost of living and have less need to withdraw cash to meet their everyday expenses. Firms also make fewer price changes because there is less pressure to adjust their prices to keep pace with rising costs.

When Inflation Falls,people