Low inflation rates tend to accelerate into higher and higher rates of inflation.

Question

Quizplus · Accepted Answer

Low inflation rates do not necessarily lead to higher rates of inflation. In fact, low inflation rates can often signal a healthy economy and can help to prevent excessive inflation. However, sustained low inflation rates can lead to deflation, which is a decrease in general price levels, and can create its own set of economic challenges.

Low Inflation Rates Tend to Accelerate into Higher and Higher