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Which of the following statements is true?

A. Deflation is a decrease in overall prices, disinflation is a decrease in the rate of inflation.
B. Deflation is a decrease in the rate of increase of overall prices, disinflation is a decrease in the rate of inflation.
C. Deflation is a decrease in the rate of increase of overall prices, disinflation is a decrease in overall prices.
D. Disinflation is a decrease in overall prices, deflation is a decrease in the rate of inflation.

User Mike Oram
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Answer:

A -Deflation is a decrease in overall prices, disinflation is a decrease in the rate of inflation.

Step-by-step explanation:

Deflation is a fall in general price levels. It occurs when the inflation rate is below zero. In deflation, inflation is negative.

Disinflation is a fall in the level of inflation. In disinflation, inflation is positive but falling.

Both deflation and disinflation increases the value of money.

I hope my answer helps you

User Joe Bowbeer
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