When the rate of inﬂation is decreasing, this economic condition is called
A) disinﬂation.
B) depreciation.
C) stagﬂation.
D) deﬂation.

Question

Quizplus · Accepted Answer

When the rate of inflation is decreasing, the condition is called disinflation. It means that there is still an increase in prices but at a slower rate than before. Depreciation is related to the decrease in the value of a currency in the foreign exchange market. Stagflation is a condition of slow economic growth, high unemployment, and inflation. Deflation is the condition when there is a general decrease in prices.

When the Rate of Inﬂation Is Decreasing, This Economic Condition