Generally speaking, the rate of inflation ________ during a recession.
A) stays the same
B) falls
C) rises
D) falls, then rises
E) None of these answers is correct.

Question

Quizplus · Accepted Answer

During a recession, the economy slows down and consumption decreases. In turn, this causes a decrease in demand for goods and services, which puts downward pressure on prices. This leads to a fall in the rate of inflation.

Generally Speaking, the Rate of Inflation ________ During a Recession