Question
Deflation is a situation in which
Answer: Option A
Answer: (a)
Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused due to reduced supply of money/credit.
Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy.
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Answer: (a)
Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused due to reduced supply of money/credit.
Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy.
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