In practice,effective deflation A) occurs when the inflation rate is less than 5% B) requires the inflation rate to be less than or equal to negative one percent C) occurred more often in the final 3 decades of the 20^th century than it has since D) is more prevalent among Latin American countries than elsewhere E) is a relatively rare phenomenon

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Quizplus · Accepted Answer

Deflation, a decrease in the general price level of goods and services, is relatively rare because most economies experience inflation. Central banks often aim to maintain a low, stable rate of inflation, making deflation uncommon.

In Practice,effective Deflation