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

Name: If the inflation rate is negative, the price level in an economy is A)rising rapidly. B)rising slowly. C)falling. D)constant. E)negative.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

When the inflation rate is negative, the price level in an economy is falling. This means that the general level of prices is decreasing, which may lead to deflation.

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