If the inflation rate is negative, the price level in an economy is
A) falling.
B) rising slowly.
C) constant.
D) rising rapidly.

Name: If the inflation rate is negative, the price level in an economy is A) falling. B) rising slowly. C) constant. D) rising rapidly.
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Question

Quizplus · Accepted Answer

When the inflation rate is negative, it indicates a period of deflation, meaning that the overall price level in the economy is falling, not rising.

If the Inflation Rate Is Negative, the Price Level in an Economy