Which of the following best describes the term deflation?
A) A falling inflation rate
B) A negative price level
C) A negative inflation rate
D) An increasing inflation rate
E) A positive inflation rate

Question

Quizplus · Accepted Answer

Deflation is a phenomenon of a falling overall price level such that the inflation rate becomes negative. This means that prices of goods and services are decreasing over time, resulting in a decrease in the purchasing power of money.

Which of the Following Best Describes the Term Deflation