Deflation is:
A)a fall in overall prices.
B)the same thing as a devaluation of the Hong Kong dollar.
C)the same thing as a depreciation of the Hong Kong dollar.
D)a change in the price structure.

Question

Quizplus · Accepted Answer

Deflation refers specifically to a fall in the overall price level of goods and services in an economy. It is not the same as a devaluation or depreciation of a currency, although those factors may contribute to deflation. Deflation is also not just a change in the price structure, as it refers to a general decline in prices throughout the economy.

Deflation Is