Disinﬂation occurs when
A) the price level is falling.
B) investment plans exceed saving.
C) a speculative investment "bubble" is bursting.
D) the inﬂation rate is declining.

Question

Quizplus · Accepted Answer

Disinflation refers to a decrease in the rate of inflation. It is a transitional phase between inflation and deflation, during which prices continue to rise, but at a slower rate. Therefore, D is the best choice as it accurately describes disinflation.

Disinﬂation Occurs When