A negative inflation rate, or deflation, means that the value of money in the economy is
A) positive.
B) falling.
C) rising.
D) constant.
E) negative.

Question

Quizplus · Accepted Answer

A negative inflation rate, or deflation, indicates that the general price level of goods and services is decreasing over time, which means the purchasing power of money is increasing. Thus, the value of money is rising.

A Negative Inflation Rate, or Deflation, Means That the Value