When the rate of inflation is decreasing, this economic condition is called:
A) Disinflation
B) Depreciation
C) Stagflation
D) Deflation

Question

Quizplus · Accepted Answer

Disinflation refers to a decrease in the rate of inflation, meaning that prices of goods and services are still increasing, but at a slower rate than before. Depreciation refers to a decrease in the value of a currency, stagflation refers to a period of high inflation and stagnant economic growth, and deflation refers to a decrease in prices of goods and services.

When the Rate of Inflation Is Decreasing, This Economic Condition