Question

Deflation can best be described as

A. what happens when banks make risky foreign loans.
B. a drop in the price of goods.
C. a rise in international trade.
D. a decline in presidential approval ratings.

Answer 1

I think it's B. a drop in the price of goods, since deflation means~
reduction of the general level of prices in an economy.

Answer 2

✡ Answer: B. A drop in the price of goods ✡

- - Why?
Because deflation means to deflates, to go down in size.


Like a balloon, when you pop it, it deflates.

In this case, going down in size is like a "drop in the price of goods"


✡Hope this helps!✡