Question

Which statement accurately describes the economic term deflation?

A. Stock market shares lose all their value as the economy slides into a deep recession.
B. There is a general upsurge in the economy as more money pours into the marketplace.
C. High unemployment results in lower interest rates for consumer savings accounts.
D. There is less money in circulation, leading to lower prices and reduced demand for goods.

Answer 1

its D) because less money means no one is or can buy things

Answer 2

The statement that accurately describes the economic term deflation is option D. There is less money in circulation, leading to lower prices and reduced demand for goods. In economics deflation is a decrease in the price of goods and services. Supply is high, demand is low and money supply decreases.