erinfreeman8675 erinfreeman8675

07-09-2020
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If inflation falls from 11% to 5%, there is deflation.
A. True
B. False

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facundobuzzetti facundobuzzetti

08-09-2020

Answer:

False.

Explanation:

False.

Deflation is the decline in prices. Meaning that there is a general decrease in prices of goods and services. In the example, inflation is diminishing. Prices increase at a lower rate, but, they increase.

Deflation benefits consumers because they can purchase more goods and services with the same nominal income.

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