An example of inflation is,if the amount of money in a country doubled,but the production of goods and services stayed the same,the price of all goods and services would decline by about half,assuming that other factors,such as external trade,were constant.

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Quizplus · Accepted Answer

The statement describes deflation, not inflation. Inflation is the general increase in prices and decrease in the purchasing power of money. When the amount of money in a country increases without a corresponding increase in the production of goods and services, the prices of goods and services generally go up, not down.

An Example of Inflation Is,if the Amount of Money in a Country